Dividends on pension

si2winit

Hi all

Hope a quick question, I am looking to find out what happens to any dividends paid on my fidelity stakeholder pension? I don’t seem to see any information on it.

Are pensions that are in equities provides dividends? I assume they are just reinvested? Quarterly? Annually?

Any information would be appreciated.

Thanks

sandsy

Your pension is a tax wrapper that holds investments inside it. More than likely, those investments are funds which are invested in assets like equities, fixed interest, property. The income generated by those assets, like dividends, is automatically reinvested on your behalf adding to the value of the funds you hold.

AnotherJoe

What sandsy said, "pensions" don't provide dividends, the investments within them do.
If it's not a SIPP, where the internal workings of your pension are exposed and you may be able to see dividends as a seperate item, then the investments are likely to be simple funds and you won't see any dividends separately, all income is managed by the fund and then investment manager and folded into your underlying investments.

dunstonh

Hope a quick question, I am looking to find out what happens to any dividends paid on my fidelity stakeholder pension?

Dividends do not happen on the pension. They happen on the fund(s) you invest in a pension.

Stakeholder pensions are designed intentionally to be simple options. So, they only use accumulation funds. This means all dividends received on the underlying assets are automatically reinvested in the fund and the unit price takes their value into account.

This is the same with accumulation units on other tax wrappers.