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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 schemesMACO BUILDING BLOCKS

Like a personal pension plan, a stakeholder pension is another option for those not in employment and can be provided for your spouse, partner, child or children, to whom the policy will revert upon turning 18. It is also available to any UK resident under age 75.

Stakeholder pension minimum standards

There are a set of minimum standards, as prescribed by the government, for stakeholder pensions:

  • Capped charging, at 1.5% for the first ten years and 1% thereafter;
  • A minimum contribution of £20 in any period, whether a regular or a one-off payment;
  • No penalties for transferring your benefits to another scheme or stopping contributions;
  • Benefits can be drawn before retirement, as long as you are over 55;
  • Optional lump sum upon retirement of one quarter of the pot, which is tax-free.

If you die before taking benefits from your pension, and younger than 75, the case is often that your funds will be passed to your spouse or elected beneficiary without being subject to inheritance tax (although other taxes may apply).

If you haven't taken your pension and you die after age 75, your pot can still be passed to a beneficiary without being subject to inheritance tax. If the pot is passed on as a lump sum, it is subject to tax at your marginal rate, but if it is paid as income, it will only be subject to income tax.

The best way to weigh up your retirement options is to speak to an independent financial adviser – and our initial advice is free.

Not all inheritance tax planning solutions are authorised and regulated by the Financial Conduct Authority.

Auto-enrolment (employers)arrow people

Our auto-enrolment (AE) guide covers what you need to do as an employer, your specific AE duties, conducting the pension assessment process, how much to contribute to the scheme and an overview of the available schemes on the market.

The guide also includes indicative pension scheme set-up and ongoing scheme managament costs. Download a synopsis of the guide from Martin Aitken & Co's website >more

Contact our pensions advisers to arrange an appointmentTimeMgt

While we are based in Glasgow, we are happy to travel to visit clients across Scotland and the rest of the UK. For free initial stakeholder pensions advice from our experienced financial advisers, contact us on 0141 272 0000 or fill out our online enquiry form.