Stakeholder pension

Stakeholder pension

To apply call 0845 272 8810

Why choose a Stakeholder Pension?

Encouraging everyone to save for their future, our Stakeholder Pension is a personal pension that meets the stakeholder criteria set out by the Government.

Our Stakeholder Pension offers you:

  • Straightforward investment choice - we’ve put together a carefully selected range of investment options.
  • Flexibility - save from just £16 a month with basic rate tax relief on top. Increase payments, take a break or move into different funds whenever you want. 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.
  • Low charges - just 1% of the value of the fund(s) you’re invested in each year, which is lower than the 1.5% Government limit for stakeholder charges.

 Investment choice

We’ve put together a carefully selected range of around 30 investment funds and five lifestyle profile options.

  • You can choose one or more funds from our Stakeholder fund range (PDF, 2.5MB). If you don't want to make a choice, that's fine. We'll automatically invest your payments into our Stakeholder Balanced Managed II Lifestyle Profile (PDF, 1.5MB)
  • You can invest in up to 12 funds at any one time. If you choose to invest in a lifestyle profile, you cannot combine this with any other fund or with any other lifestyle profile.
  • The returns on your investment will vary depending on factors such as how long you're investing for, your fund choice, the performance of the funds you choose, how much you pay in and our charges.

Selecting the right fund can be complicated so you may wish to seek financial advice. Call us on 0845 272 8810 or speak to your financial adviser, (there may be a cost for this).

 Transferring your pension to a Stakeholder Pension

Transferring your pension to a Stakeholder Pension is easy. Call us today on 0845 272 6607 to find out if transferring is the right option for you. Calls may be monitored and/or recorded to protect both you and us and help with our training.

Transferring may not be suitable for everyone. If you’re transferring benefits from a previous employer’s scheme, there’s no guarantee that what you’ll get back from your plan will be higher. You may be also giving up rights in the other pension scheme that you’ll not have with your plan.


There’s an annual charge of 1% of the value of the fund(s) you’re invested in. So if the value of your fund(s) is £7,500, we’ll take a charge of £75 that year. This charge is lower than the 1.5% cap specified by the Government.

The higher the value of your fund(s), the lower the charges

If the value of your fund(s) is over £25,000, we reduce the effect of the charge - by adding extra units to your fund(s) each month. This works out at 0.1% of the value of your fund(s) over the year. If the value of your fund(s) is over £50,000, we’ll add extra units to the value of 0.2% each year.

Charges are regularly reviewed and may be increased to reflect increases in overall costs and/or changes in the assumptions made. However, as the Government has set a maximum charge that can apply to Stakeholder pensions (currently 1.5% each year for the first 10 years and 1% each year after that), the charges on your plan cannot exceed these limits. These Government limits could change in the future.

At retirement options

Whether you‘re saving for retirement or about to retire, the changes announced in the 2014 Budget will give you greater control of your money.

A consultation is now underway to look at how you’ll be able to access your pension savings when you retire. The proposal is that you’ll be able to access your pension pot from the age of 55. You’ll be able to take what you want - when you want it. The first 25% is tax free whilst the rest is added onto any other income you have in the tax year of payment and will be liable to income tax.

Depending on the size of your pension pot, you’ll be able to cash it in, buy an annuity or draw down income from it.

Find out more about our pension products

Keep up to date by reading our MoneyPlus blog.

 Important note

Laws and tax rules may change in the future. The information here is based on our understanding in May 2014. Your personal circumstances also have an impact on tax treatment.

As with any investment the value of your fund can go up or down and may be worth less than what was paid in.