Stakeholder pensions were introduced to encourage people from all walks of life to save for retirement.
Things you should know about a Standard Life Stakeholder:
- it's low cost. You can start one with as little as £20 a month (gross), although you should try to save as much as you can reasonably afford, without over-stretching yourself.
- generous tax
benefits. Pay in £80 (tax year 2008-09) and have it topped up to £100 if you are a non-tax payer or basic-rate tax payer. Higher-rate tax payers can claim back an extra 20% through their tax return. Tax relief may alter and its value depends on your financial circumstances.
- low charges - 1% of your fund value each year.
- the money is locked away until you reach retirement age. The minimum retirement age is currently 50 but will increase to 55 after April 2010.
- a carefully selected choice of investment funds
- remember that what you get at retirement age will depend on:
- how much you save
- the performance of your chosen funds
- any payment breaks you take (stopping payments will reduce your final fund).
- You cannot cash in this plan at any time.
A Stakeholder from Standard Life is designed to grow and change with you. You
can increase payments, take a break for a while (which will reduce your final fund value) or switch funds. The first 20 fund switches in any 12-month period are free. If more than 20 fund switches are made in any 12-month period we reserve the right to charge for these additional switches.
If you start
a new job you can carry on paying into your plan or transfer it to your new employer's
scheme at no extra charge.
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