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Stakeholder

Stakeholder Pension – the low-cost way to save for your retirement

In association with Legal & General, a Stakeholder Pension is a transparent, flexible way to save for your retirement and is great value for money.

How stakeholder pensions differ from other personal pensions

By law, stakeholder pensions must meet a number of minimum standards to make sure they offer value for money, flexibility and security. The standards include:

Limit on annual management charges:

• Managers can charge fees of up to 1.5% of your pension fund each year for the first 10 years you hold the product, and thereafter up to 1%. See Legal & General's costs.

Flexibility:

• You can switch to a different pension provider without the provider you leave charging you although you may have a loss of income and growth whilst the transaction is being completed
• You can start contributions from as little as £20 as a one off payment, or you can pay monthly or annually
• You can stop, re-start or change your payments whenever you want - there are no penalty fees

Security:

• The scheme must be run by trustees or by an authorised stakeholder manager, whose responsibility will be to make sure that the scheme meets the various legal requirements.
• The Stakeholder Pension we offer is provided by Legal & General. Legal & General invests over £280 billion worldwide on behalf of investors, policyholders and institutions. Over 6.5 million people rely on them for life assurance, pensions, investments and general insurance. It is one of the biggest providers of index-tracking investments in the UK, managing over £175 billion (as at 31 December 2008)

The Legal & General Stakeholder Pension – features

In addition to those mentioned above, the features of the Legal & General Stakeholder Pension include:

• Tax relief on contributions

• Fast online application - around 10 minutes
• A wide selection of investments including easy, lifestyle choices
• Your employer can contribute to your Stakeholder Pension
• You don't have to be working to save in a Stakeholder Pension

Stakeholder Pension – Is it right for you?

While a stakeholder pension may be right for most people, please ensure that it is right for you. A stakeholder pension could be a good choice if:

• You are self-employed
• You aren't working but can afford to pay for a pension
• Your employer doesn't offer a company pension scheme
• You do not pay into a company pension
• You are on a moderate income and wish to top up the money you would get from a company pension

If you need further guidance, you may find the Financial Services Authority's Decision Trees helpful, or if you have any doubts as to whether a stakeholder pension is right for you, please seek independent financial advice

Investment carries a variety of risks

We understand that investing isn't right for everyone. It's well known that investments, their value and the income they provide can go down as well as up and you might not get back what you originally invested. Please remember that your money is tied up until you take your benefits, the law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances. If you're not sure about the suitability of an investment contact our Advice team.

01296 41 41 42