Stakeholder Pensions
In 2006 changes took place to Stakeholder contracts, so if you have questions concerning a pre April 2006 contract, please consult your IFA.
What you need to know: prior to April 2006 the term Stakeholder had a technical and legal meaning regarding the details of the contract. If you have a contract which started before then, take it to your IFA for assessment, as the rules governing it will have changed.
After April 2006 pensions could be called Stakeholder, but the name is more of a marketing term and has no specific legal or technical implications or meaning.
If you have a post-April 2006 policy, see your IFA.
If you are considering a new purchase, see your IFA.
Last updated on
July 14, 2011
A personal pension or stakeholder pension plan is a long-term contract. It is not possible to surrender a pension for a cash sum.
Future changes in pension legislation may adversely affect the plan, or the benefits derived from it.
Your future benefits will depend on fund growth in the period up to retirement and prevailing annuity rates at retirement. For instance early retirement is likely to result in lower benefits, both because of the shorter period of growth and the higher cost of annuities for younger retirees.
The value of unit-linked pension funds is related to the markets in which they invest and thus will rise and fall in line with those markets. Past performance is not necessarily a guide to the future.
The benefits derived from a personal pension or stakeholder pension plan are in addition to any State pensions you may be entitled to. They may result in you becoming ineligible for State benefits such as the Minimum Income Guarantee/Pension Credit and Housing & Council Tax Benefits.
All pensions in payment are treated as earned (as distinct from investment) income and assessed for Income Tax.
Kellands Cotswolds
is authorised and regulated by the Financial Services Authority
(http://www.fsa.gov.uk/register/home.do).
FSA Registration No: 197438