Stakeholder
Pension Plan
What is a Stakeholder
Pension Plan?
Recently the government
introduced a new type of pension
plan , called a Stakeholder pension plan.
The idea behind the stakeholder pension
plan is to apply strict rules as to the minimum that
you are allowed to save, and the charges that insurance
companies can levy.
The maximum charge each year under these
stakeholder pension plans is 1.5% of your fund. The
minimum that you can start saving into a stakeholder
pension plan is £20 per month.
This represents extremely good value
to you. Also, Stakeholder pensions are available to
more people than before. You are allowed to save up
to £3600 per year into a stakeholder pension
plan, without reference to your earnings. This means
that even the unemployed, retired or children can
save for retirement.
The only people that are not allowed
to hold a stakeholder pension plan are non-UK residents
and certain company directors who already hold a company
pension scheme.
Click
here to find out more about Stakeholder pensions from
the Government website.
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But pension plans are risky,
aren't they?
That really depends on what type of pension plan you
have. However, if you consider that all a pension plan really is,
is a wrapper for your savings, then it need not be.
Many people have lost money over the last few years
because they saved their money in funds that invest in shares. However,
most good products also allow you to save in much safer areas like
cash, property or even government borrowings.
This really proves the value of good advice
when it comes to important areas like your retirement.
Click here to see our leaflets on
pensions.
Click here to see a leaflet
on why you should review your pension plans.
To
find out more about a stakeholoder pension plan, please contact
us.
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For
United Kingdom residents over 18 only. © 2003 - 2008 Woodruff Financial
Planning.