Stakeholder pension versus SIPP

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 864 views
Nationwide8Nationwide8 Forumite
362 Posts
Hung up my suit!
Sorry if obvious but what's the difference between a Stakeholder pension and a Self Invested personal pension ?

Replies

  • Sorry if obvious but what's the difference between a Stakeholder pension and a Self Invested personal pension ?
    There are many differences.

    Stakeholder pensions have strict rules to comply with by law in order to be a cheap pension for those with basic planning needs. Often this means limited fund choice and features.

    SIPP provides greater flexibility but equally can be confusing and over-egging the pudding too for someone who just wants to save, say, £50 a month.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • dunstonhdunstonh Forumite
    106.7K Posts
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    And in between stakeholder and SIPP you have personal pensions. Typically offering the stakeholder funds on the contract at the same price as a stakeholder but also a range of the popular external funds. Some personal pensions actually look like SIPPs.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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