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What type of pension do you have? > Stakeholder Pension

6. Stakeholder Pension

The idea for Stakeholder pensions was to offer a pension that set boundaries regarding cost, however, since they were introduced other types of pensions have become as cheap and offer better options.

Stakeholder pensions still offer low and flexible minimum contributions, capped charges and a default investment strategy (useful if you don’t have a financial adviser). These can be offered by employers as well as individuals starting one themselves.

Stakeholder Pension.

Minimum government 'set' standards stakeholder pensions must adhere to;

  1. Limited charges
  2. Flexible contributions
  3. Low minimum contributions
  4. Charge free transfers
  5. Default investment fund

The provider will offer you a selection of funds to choose from, and the percentage invested in equity is normally higher while you work.

If you change jobs you can keep paying into this pension, or, stop paying into it. If you stop it will continue to grow (subject to fund performance) but you might be charged non-contribution charges (known as deferred fee).

Contact Cambridge Pensions for further information regarding your Stakeholder Pension.