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A Stakeholder Pension (SHP) is a type of Personal Pension Plan designed to provide an optional lump sum and income in retirement. In common with a Personal Pension Plan, Stakeholder Pensions are available to any United Kingdom resident under the age of 75. The minimum age for Stakeholder Pension is 55.
You, in conjunction with your adviser, choose the pension provider and make the arrangements for paying the contributions to the plan.
You can start a SHP even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension. You don’t have to be working to take out a SHP and you can also provide a SHP for your spouse/partner or your child/children.
When you contribute to a SHP, your money is invested by the pension provider (usually an insurance company) to build up a fund/pension pot over a number of years.
A Stakeholder Pension incorporates a set of minimum standards established by the government, which include:
The key point about SHPs, as with any other pension, is to start contributing as early as possible and keep making contributions for as long as possible. That way your pension pot has time to build up and the investment returns compound through reinvestment over many years. The result should be a significant sum of money to invest when you retire.
If you die before age 75 and you have not started to take benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of inheritance tax. Other tax charges may apply depending on the circumstances.
It is possible to continue past age 75 without taking benefits. If you die after age 75 your pension pot can still be passed to a nominated beneficiary free of inheritance tax. However, if paid as a lump sum, tax at the beneficiary’s marginal rate will apply (2024/25). If it is paid as an income to your spouse or dependant there will be no initial tax charge, but any income paid would be subject to income tax.
Read lessI have always found pensions to be very confusing. David Knight however has made things a lot clearer he explains things thoroughly and now provides me with expert professional pensions advice. I have been very happy with the service provided. Communication is very good, he is approachable and I feel in safe hands
Kevin has been dealing with my finances for a number of years now, I have always found him honest and trustworthy and true to his word. He has helped me greatly with my pensions and continues to do so. I would freely recommend Kevin's services, and often do so to my clients and friends and family
Kevin has been my financial adviser for almost 12 years. I trust him implicitly. He has always guided me through the various investment options . Whilst he has been mindful of my reluctance to take risks financially he has encouraged me to take measured steps in order to maximise my savings. His advice and guidance has proved to be very advantageous. At our meetings he has always been well prepared and willing to answer my questions .
My business partner and I were looking for solid Financial advice on future pension and Property investments. Kevin has managed our situation exceptionally and has always been willing to give good advice. He has always been able to explain the investment process to us so that we understand it and know what the pros and cons are with each investment. With regards to the current financial climate we have had to chop and change the way in which we have looked at our investment and Kevin has played a crucial role in helping us reach the most sensible and essentially profitable solution.
Knight Parker have provided me with expert financial advice in respect of my pensions for three years. They are knowledgeable, information is timely and they have enabled me to make very good investment decisions.
I am extremely happy with the service I receive from David. He presents things in a detailed but understandable way and is always on hand to to answer my questions and queries.
My husband and I recently decided to retire and therefore needed to get expert advice regarding our pensions. We found that Dave was very friendly and offered a very professional service. His advice was so easy to understand and took away the complicated wording that you often come across when dealing with pensions. Hence our pensions were dealt with, without any effort on our part. Would definitely recommend David Knight
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Knight Parker Wealth Management LLP is registered in England and Wales, Company Number: OC385181. Registered Address: Wynn House 60 High Street, Coleshill, Birmingham, England, B46 1AZ.
Knight Parker Wealth Management LLP is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited which are authorised and regulated by the Financial Conduct Authority.
The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
Approver Quilter Financial Services Limited and Quilter Mortgage Planning Limited 02/10/2024.
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