Stakeholder pensions & auto-enrolment

A stakeholder pension is a type of personal pension plan and, as such, is designed to provide an income and an optional lump sum upon retirement.

Stakeholder pension schemes

A stakeholder pension, similar to a personal pension plan, is an alternative for those not employed. It can be set up for your spouse, partner, child, or children, and they can take over the policy after turning 18. It is available to anyone below the age of 75 residing in the UK.

Stakeholder pension minimum standards

Stakeholder pensions must meet certain government standards, including:

  • Capped charges of 1.5% for the first ten years, and 1% thereafter.
  • Minimum contribution of £20, whether regular or one-off.
  • No penalties for transferring or stopping contributions.
  • Benefits can be withdrawn from age 55.

Option to take a tax-free lump sum of one quarter of the pension pot upon retirement.

If you pass away before accessing your pension and are younger than 75, your funds are often passed to your spouse or chosen beneficiary without inheritance tax (other taxes may apply).

If you haven’t accessed your pension and pass away after age 75, the pot can still be passed on without inheritance tax. If received as a lump sum, it is taxed at your marginal rate, but if taken as income, it is subject to income tax.

Speaking to an independent financial adviser is the best way to evaluate your retirement options, and our initial advice is free.

Note: Not all inheritance tax planning solutions are regulated by the Financial Conduct Authority.

Auto-enrolment (employers)

Download our auto-enrolment (AE) guide from Martin Aitken & Co's website for comprehensive information on your employer duties, conducting pension assessments, contribution amounts, and available schemes.

The guide also provides an overview of pension scheme setup and ongoing management costs.

We offer free consultations

We offer free consultations to help you navigate the choices available and ensure your best interests are prioritised, without any sales pressure.

Take the first step towards your financial goals. Arrange an appointment with one of our advisors today.

Contact us now to discover how we can assist you in achieving your financial objectives. Call us 0141 272 0000 or simply fill out our online enquiry form to get started.