Correct as at August 2012
You must be at least 18 years old to take out an Individual Stakeholder Pension Plan. An Individual Stakeholder Pension Plan can also be held by a minor (under the age of 18) subject to certain conditions. Your Financial Planner can provide you with information on this.
You can open an Individual Stakeholder Pension Plan with £20. You can invest up to 100% of your gross earnings or £3,600 if greater. This is subject to an annual allowance of £50,000 across all your pension arrangements and a 'lifetime allowance limit' of £1.5 million (as at 2012/2013 tax year). You can arrange for your regular payments to increase automatically each year in line with the National Average Earnings Index. The minimum increase is 3% and the maximum is 15%.
If you are not in receipt of taxable earnings, you can still make payments of up to £2,880 each year (actual contribution will be £3,600 after tax relief).
A Yearly Management Charge, currently 1% (the maximum level set by government legislation is 1.5% for the first 10 years), is deducted from the value of your plan. This covers the cost of running your plan, including investing your money professionally. Discounts on the Yearly Management Charge are available when your pension fund grows beyond a certain limit. The table below shows how the charge discount increases as your pension fund grows.
| Up to £49,999.99
| £50,000 to £99,999.99
| £100,000 and over
If you would like to know more about the prices, terms and conditions of the Individual Stakeholder Pension Plan, please contact your local branch to speak with a Financial Planner.
Go to book an appointment