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Stakeholder Pensions

  1. Overview
  2. In detail
  3. Illustration
  4. FAQs
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Frequently asked questions for Stakeholder Pension

How does a pension work?

Read our beginners’ guide to pensions and retirement where we explain the different pension savings options and how to make the most of your money when you retire. 

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What happens if I change jobs?

If you change jobs, become self-employed or leave paid employment then you simply take your plan with you. In most cases, you (and your new employer if you have one) will be able to continue making payments to your plan. Please note that, regardless of whether you are earning or not, there will be a limit to how much you can pay.

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What are my options when I take my pension?

If you’re about to retire and take your benefits, see our Retirement Planning section.

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Can I increase my payments once the plan has started?

You can increase the amount you pay at any time subject to the limits that apply. You can even stop making payments if your circumstances change, although you should always discuss this decision with your financial adviser as it is likely to mean less money is available when you take your benefits. You can request an illustration from us showing the effect of reducing or stopping your payments.

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What are your charges for?

Like most private pensions, we charge for managing and investing your plan. If you set up a Top Up Plan, additional charges will apply to pay for any advice you have received from your financial adviser. Details of the charges can be found in the personal illustration and product literature you received when you started your plan and the plan statement you receive every year.

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Is there any upper limit to my payments?

Read our beginners’ guide to pensions and retirement for full details of the limits that apply. This information is based on current tax rules which may change in the future.

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What happens if I die before I retire?

The full value of your pension plan will normally be used to provide a cash lump sum for your dependants or beneficiaries, although it can be used to provide an income for one or more dependants or beneficiaries using an annuity and/or an income drawdown plan.

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Will tax be payable on the death benefit?

If you die before you are age 75, any lump sum or income paid to a dependant or beneficiary will not normally be subject to tax.

The value of the tax benefits of a pension plan depend on your individual circumstances. Tax rules and your circumstances may change in the future.

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How can I check how my plan is performing?

When your plan is set up, you will receive your policy documents followed by a personalised Illustration based on your chosen payments, fund choices and selected pension date. This will show you what you might get back when you take your benefits.

Every year we’ll send you an updated pension benefits statement which shows the value of your plan and what you might get back, assuming certain assumptions are met. You can also keep track of your pension online, as well as checking daily fund prices.

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Have we answered all your questions?

We hope you have found this summary of frequently asked questions helpful. If you have any further questions please contact us.

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How to apply