Stopping paying into stakeholder pension - options?

checkly

When our son was born we opened a stakeholder pension for him which we have paid into over the years. With him about to turn 18 we want to stop paying in and leave it to grow until he retires. Having cancelled the direct debit we heard from Aviva who seem to suggest that we need to continue to pay in at least a minimum each year which we don't want to do.

Can we just leave a stakeholder pension to grow without paying in further?
If not, what are our options.
Any advice appreciated.

xylophone

https://www.moneyadviceservice.org.uk/en/articles/stakeholder-pensions

"If you decide to stop paying into a stakeholder pension, you can leave the pension fund to carry on growing, mainly through investment growth, but check to see if there are extra charges for doing this."

Did you get something like this https://www4.friendslife.co.uk/doclib/xpen95d.pdf
when you opened the plan? What information was given about options when the child turned 18?

Had your child considered taking over the pension and making the minimum contribution?

dunstonh

Having cancelled the direct debit we heard from Aviva who seem to suggest that we need to continue to pay in at least a minimum each year which we don't want to do.

Stakeholder pensions were introduced in 2001. You say you took one out when he was born. You also say he is about to turn 18. So, that would make it 1997/1998 that you took it out. So, it cant be a stakeholder pension.

If its not a stakeholder pension then it may be another product, such as an endowment, with a fixed tie in period.

Can you verify the product you have?

checkly

It is a stakeholder - checked and we started it in 2002.

dunstonh

checkly wrote: »

It is a stakeholder - checked and we started it in 2002.

So you still have 5 years to go until your son is 18 then. So plenty of time to sort this.

Stakeholder pensions can be stopped/started, increased/decreased to your hearts content.

Cancelling the direct debit just cancels the method of payment. Did you inform Aviva that you were stopping the payments? if not, then they will send out the usual warning letter saying the method of payment is cancelled and how it will reduce benefits etc and maybe offer alternative options. I suggest you read the letter again as you have probably misread it (in the same way you seem to think your 13 year old son is 18 )

atush

I assume the child is 17, and they just forgot they didnt start it when he was born.

Call Aviva. If they wont let the pension ride, then transfer it elsewhere.

How much is it worth? what is it invested in? Were you happy with performance?

dunstonh

Call Aviva. If they wont let the pension ride, then transfer it elsewhere.

They will. Its a stakeholder pension. Its designed to be flexible.

checkly

atush wrote: »

I assume the child is 17, and they just forgot they didnt start it when he was born.

Call Aviva. If they wont let the pension ride, then transfer it elsewhere.

How much is it worth? what is it invested in? Were you happy with performance?

Yes - sorry for confusion, son is 17, turns 18 in a few weeks. Will phone Aviva