switch fund for stakeholders

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
6 replies 2.5K views
halcyon_drifthalcyon_drift Forumite
54 Posts
is it possible to have a share funded stakeholders pension for say the first 15 years and then change it to cash funded for the remainder period or do you have to stick with what you originally choose? not got a pension as of yet, nor had the chance to speak to anyone, so any info would be greatly appreiciated. dont wanna look like a totally nitwit when i go to speak to an advisor, do I

Halcyon
A shadowy flight into the dangerous world of a man who does not exist.

A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.

Replies

  • dunstonhdunstonh Forumite
    107.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    Most providers offer a range of funds to cover various risk areas. Some have an automatic switch as you get closer to your selected retirment date. Others require you to do it manually (or you pay an IFA to do it at specific times).

    Who is the pension provider?
    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.
  • i havent even started researching providers yet, but thank you for the quick response anyway, twas just the answer i was looking for.

    halcyon
    A shadowy flight into the dangerous world of a man who does not exist.

    A young loner on a crusade to champion the cause of the innocent,
    the helpless, the powerless, in a world of criminals who operate above the law.
  • isasmurfisasmurf Forumite
    1.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭
    As I understand it, the Government has proposed that all Stakeholder Pensions bought from next April do something like this, i.e. gradually transfer the funds to 'safer' investments as you approach retirement age. I believe they call it 'lifestyling'.
  • PalPal Forumite
    2.1K Posts
    ✭✭✭✭
    Lifestyling will be the default option for those who do not want to choose their investment funds, but you will be able to opt out of it and choose your own funds if you think you know what you are doing.
  • dunstonhdunstonh Forumite
    107.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    They made similar noises when stakeholder was launched but not every provider has one.

    Personally, I would prefer to build my own portfolio of funds and then move them over myself as I get older.

    This adds another thing to be aware of that some providers do not make free switches or limit you to a number of free switches. In addition, charges on Stakeholders will be up from April and, although this hasnt been confirmed yet, it is believed that Stakeholders purchased prior to then will maintain their lower charges and be ringfenced.
    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.
  • MilarkyMilarky Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭✭
    charges on Stakeholders will be up from April and, although this hasn't been confirmed yet, it is believed that Stakeholders purchased prior to then will maintain their lower charges and be ringfenced.

    That's a bit of good news, then, it is borne out as you suggest?
    .....under construction....
This discussion has been closed.
Latest News and Guides

Best student bank accounts 2021/22

Incl. free 0% overdrafts and railcards

MSE Guide

Next 50% off sale rumour

Here's what we've found...

MSE Deals