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So very first of all what is a stakeholder pension? Well it is not a new kind of pension so to speak, but it is a individual pension which has a set of circumstances under which it must operate in order to be calle...

For those of you who are thinking about arranging for your retirement, you will want to do a bit of investigation on pensions to find the best way to save for your future retirement. This post is about stakeholder pensions and will explain a bit about them and how they perform.

So initial of all what is a stakeholder pension? Nicely it is not a new sort of pension so to speak, but it is a individual pension which has a set of circumstances under which it must operate in order to be named a stakeholder pension. It is not limited to being a personal pension as it can also be a set of circumstances which applies to a money purchase occupational scheme.

The objective of the set of circumstances is to make the pension straightforward, straightforward and good value for cash. So what are the set of circumstances that apply to stakeholder pensions then? Nicely right here are the minimum standards that apply to it:

1. The charges must be low at around 1% of the fund invested every year.

2. It must be developed to be easy which is done by having a normal investment alternative so that you do not have to decide on the investments oneself.

three. It should be portable, meaning that you can transfer the stakeholder pension on to a different pension which can be one more stakeholder pension or yet another personal pension. Also if you do this you would not be penalised for transferring it.

4. The pension provider should maintain can i cash in my pension you informed of any can i cash in my pension early adjustments in the charges you have to pay for it by letting you know one particular month just before the alterations take spot. They need to also send you a statement at least once a year so you are kept up to date with your account.

five. The minimum contribution ought to be 20 and you need to not be obliged cash pension to pay in each and every month unless you wish to do so.

So what are the positive aspects of a stakeholder pension? The primary positive aspects are that it has low charges, that it has tax positive aspects, that they are effortless to realize and relatively easy, are generally speaking excellent worth for funds and that you can transfer it to an additional pension with out incurring any fees.

Are there any disadvantages to it? Well the principal disadvantages are that the pension quantity you will obtain in the future is not predictable, that there is an investment threat and that there is no guarantee that your stakeholder pension will preserve pace with price inflation.