Welcome to enterprise on line. Thank you for reading and rating my reviews, constructive criticism w...
Welcome to enterprise on line. Thank you for reading and rating my reviews, constructive criticism welcome. I'm back good to see you all.
Member since:29.05.2004
Reviews:193
Members who trust:11
WHAT'S ON OFFER WITH STAKEHOLDER?
- Annuity purchase plan with up to 25% as a tax-free lump sum.
- You can normally take pensions between 50 - 75 years old even if you are still working.
- You can contract out of the State Second Pension and store here.
HOW MUCH CAN BE PAID IN?
- Both you and your employer can make a contribution.
- Most schemes allow small contributions.
- The Inland Revenue sets a maximum contribution for each tax year. Most people (whatever your status) can pay a maximum of £3,600 p.a including basic tax relief of 22%. You can pay more than the maximum depending on your age and income.
- Payments can start at 16 years old.
- You can contract out of SERPS.
- If you are a member of an occupational pension you may keep this and make contributions up to £3,600 each tax year. If you are not a member of an occupational pension, you can usually make a contribution if your earnings are below £30,000.
- You can transfer in a pension plan from another company, it would be a good idea to seek financial advice before transfer.
WHAT ABOUT TAX?
- Every individual who pays into a stakeholder pension plan will get tax relief payments.
- Under present tax arrangements, for each £1 you pay into the plan the Inland Revenue will pay an extra 28p into your plan, even if you don't normally pay income tax.
- If you pay income tax at the high rate you will be able to claim back the extra tax from the Inland revenue at the end of the year.
- If you take a cash lump sum when you retire, it is currently tax-free. You pension will be taxed as earned income.
- If you die before you retire, there is normally no inheritance tax payable on the value of the plan.
CAN I TRANSFER MY PLAN?
- At any time before you start taking your pension, you can transfer your plan to another pension arrangement free of charge.
MY EXPERIENCE
I have had 2 stakeholder pensions. My 1st with Virgin Money I took out in haste in 2002, I had 2 other pensions I wanted to tidy up (an occupational pension I wanted incubated, the other a private pension) I also wanted to make use of the tax advantages. The Virgin stakeholder pension offers simplicity with a choice of only 2 funds (and free movement between) and ease of use.
I moved to my second stakeholder pension a few years later. I'd had some problems with Virgin and was looking for something more sophisticated. The TUC teacher's stakeholder's pension offered this. The scheme is organised by the Prudential. Giving more fund choice and a lower operating cost. One advantage of a stakeholder pension is the no cost ease of transfer between fund holders. The pension scheme has stabilized and I trickle a small monthly amount into the fund and top up with lump sums when I have cash spare. I would have benefited from more thought before opening the Virgin product. You might be wise to ask advice from an Independent Financial Advisor.
Pictures of Stakeholder Pensions
Stakeholder booklet supplied with application details
How helpful would this review be to a person making a buying decision? Rating guidelines
Is it worth taking out if you only have a few years left to work? I will have a reduced pension as I had many years not working and a small one from the Health Service. I find all the advice confusing. Jo
Dec 30th, 2004
(May 17th, 2005)
very helpful by (91%):
helpful by (9%):
