Stakeholder Pensions UK retirement plans. Stakeholder Pension Transfer and Personal Pension Transfers

Stakeholder Pensions  
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What is a Stakeholder Pension

UK Stakeholder pensions are secure, flexible, low cost and value for moneypension schemes. They are ideal for people to save for retirement.

You can invest intostakeholder pension plan at any level up to the Inland Revenue permitted maximum of percentage of earnings or £3,600 gross per annum, whichever the greater, using your best year's earnings from the last five tax years where you were not a member of a companypension scheme.

You use your own money to build up your retirement fund. Your Stakeholder Pension Scheme can put your contributions into investments such as stocks and shares for you.

At retirement, up to 25% of thefund value can be taken as tax-free cash and the balance used to provide an income. Benefits can be taken in many ways and you can choose what is best to suit their circumstances.

The Government believes that the best way for you to have a secure retirement is to use the basic state Retirement Pension as a start. If you want to increase your income when you retire, you need to think about the best additional or second pension option for you. The earlier you start paying into pensions and the more you pay in, the higher your retirement income will be.

If you have not yet made any arrangements for a second pension, a stakeholder pension may be the best option for you. But whether a stakeholder is right for you will depend on your circumstances. If you have made some arrangements, you should think about whether the basic state retirement pension and any additional pension, together with any arrangements you have already made, will be enough to meet your needs at retirement.

Personal Pension Transfer

Whilst you can transfer into any UK stakeholder pension with no initial charge, there are still a number of factors that need to be considered. If you are considering transferring your pension away from your current provider, the main factors you have to consider, is the possible benefits of transferring against the associated costs of moving, including any penalties you may incur by your existing provider.

The easiest way to make a charge comparison is to ask your provider for a Current Valuation and Transfer Value. This will enable you to see what the costs are in moving away from your current provider. In addition by asking your insurance company to provide a pensions projection to your chosen retirement age, you can make a comparison with a newer charged pension contract. This will assist you in making a decision as to whether a transfer is the best thing to do.

We have attempted to highlight the main factors that could influence whether or not transferring your pensions to another provider is the right thing to do, there may be other reasons as to whether this is a suitable product to transfer to and if you are in any doubt you should seek independent financial advice.

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