What type of pension is a stakeholder pension?
defined contribution pension
A stakeholder pension is a type of personal pension. It’s a defined contribution pension, which means you pay money into a pot over time, and this money is invested in a range of assets such as stocks and shares.
What is the difference between a stakeholder pension and a personal pension?
A registered pension scheme allows the member to obtain tax relief on contributions into the scheme and tax free growth of the fund. A personal pension is a privately funded pension plan. A stakeholder pension is a more tightly regulated personal pension plan particularly over charging levels.
What is an individual stakeholder pension?
A stakeholder pension is a type of defined contribution pension, which has a retirement value based on the amount you pay in and how your investments perform over time. They’re arranged by a contract between an individual and their pension provider, and must adhere to strict government conditions.
Can I cash in a stakeholder pension?
Can you cash in a stakeholder pension early? Most stakeholder pension schemes won’t allow you to withdraw your funds until you turn 55. However, you should be able to move your funds to another stakeholder pension provider. Some pension plans will let you cash in your pension funds early, if you become seriously ill.
How much does an employer pay into a stakeholder pension?
The minimum contributions that you must pay into your staff’s pension scheme are shown in the table below – they’re currently a total contribution of 8% with at least 3% employer contribution. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings.
Do employers contribute to a stakeholder pension?
Setting up a stakeholder pension Your employer might contribute to the scheme. If they’re using the stakeholder pension to meet their automatic enrolment duties, they must contribute. You can also set up a stakeholder pension for yourself.