Stakeholder pension
The low cost, flexible way to save
A stakeholder pension plan is for anyone under the age of 75 who wants to save in a tax efficient and cost effective way.
The final value of your pension fund will depend primarily on how much has been paid in and how well the fund’s investments have performed. The value of investments can fall as well as rise, and you may not get back the full amount you invest.
Our stakeholder pension is provided and administered by Aviva, one of the UK’s largest insurance companies.
What is a stakeholder pension?
Stakeholder pension plans need to meet strict government guidelines. This makes sure they’re low cost, flexible and simple to set up.
Like other personal pensions, stakeholder pensions offer you a range of tax advantages including:
- Tax relief on your contributions
- Tax efficient growth in your pension fund
- The facility to take part of your pension benefit as tax-free cash
Key points about the NatWest Stakeholder Pension Plan
- Low minimum savings – you can start saving from just £20 a month
- Low charges – with our low charges, more of your money will be invested for your future
- Flexibility – stop and start payments, or change the amount you pay, whenever you like
- Simple investment choice – choose from two managed funds
- Protecting your fund growth – when you’re five years from retirement we’ll gradually move your funds into less risky investments
Who is it for?
A NatWest Stakeholder Pension Plan could be suitable for you if:
- You are employed, self employed or even if you don’t work
- You don’t plan to save a lot every month
- You’re not looking for a wide range of investment opportunities
- You want a low cost pension plan
- You’re under age 75
Need help deciding?
A chat with one of our financial planning advisers is without obligation. Call us to make an appointment on 0800 051 1871
With the Aviva Stakeholder Pension Plan your money is put into stock market investments. This means that your pension fund increases or decreases in value depending on the performance of the assets in the fund.
| Starting your plan | Decide how much you want to invest. You can save from £20 a month | |
| Choose your investment funds | So long as you have at least five years to retirement, you can invest in either the Balanced Managed Lifestyle Strategy Fund or the Defensive Managed Lifestyle Strategy Fund. | |
| Building your fund | Continue to invest in your plan regularly and build your retirement fund over time. | |
| Approaching retirement | Five years before you plan to retire, we’ll gradually switch your money into lower risk funds that are less susceptible to sudden changes in stock market values. | |
| When you retire | You can take your benefits whenever you want between age 50 (55 from April 2010) and 75. | |
| Benefits | Tax free cash
| Income Choose the type of pension income that suits you best, such as:
|
Ready to start saving?
Have a chat with one of our financial planning advisers for a no obligation review of your retirement plans. Call us to make an appointment on 0800 051 1871.
You can choose to invest in either the Balanced Lifestyle Strategy Fund or the Defensive Managed Lifestyle Strategy Fund. These funds invest in a wide range of assets, including company shares.
| More than five years to retirement | ||
|---|---|---|
| Fund name | Risk level | Description |
| Balanced Lifestyle Strategy Fund | medium | This fund aims to provide capital growth over the long term. The mix of investments gives the possibility of high returns from company shares, but with the safety of spreading the risk over a wide range of assets, including bonds, property and cash. |
| Defensive Managed Lifestyle Strategy Fund | low/medium | This fund aims to provide capital growth over the long term with a low level of risk. The mix of investments aims to achieve a higher level of return than cash alone |
From five years before your retirement, we’ll gradually switch your money into lower risk funds so that when you retire, 75 per cent of your money will be in the Retirement Protection Fund and 25 per cent in the Deposit Fund.
| Less than five years to retirement | ||
|---|---|---|
| Fund name | Risk level | Description |
| Retirement Protection Fund | low/medium | This fund aims to track the performance of the FTSE Actuaries UK Gilt Index for gilts with an outstanding term of over 15 years. The fund invests in British Government fixed interest stocks whose performance matches the costs of buying a pension income. |
| Deposit Fund | low | This fund aims to provide a safe return in line with bank and building society interest rates by investing in cash investments with first class banks and major UK companies. The fund has very little risk attached to it. It aims to protect values from falling but is not guaranteed. |
A stakeholder pension is one of the most straightforward, tax efficient ways to save for your retirement.
Tax benefits
- You get tax relief on your contributions. The amount of tax relief depends on how much you earn
- Your contributions grow in a tax efficient fund
- You can take up to 25% of your accumulated pension fund as a tax free lump sum
Price benefits
- Start a Stakeholder Pension Plan from as little as £20 a month
- Charges on the Aviva Stakeholder Pension Plan are low so more of your money is invested
Other benefits
- Change, stop and restart your contributions whenever you want
- Even if you don’t have any earnings, you can still save up to £3,600 a year with a Stakeholder Pension Plan
- If you have another pension plan or have been a member of a company pension scheme, you can normally transfer these pension funds to your Stakeholder Pension Plan, but you should always take financial advice first
- If you want, you can transfer your Stakeholder pension fund to another pension scheme anytime before you retire
Ready to start saving?
Have a chat with one of our financial planning advisers for a no obligation review of your retirement plans. Call us to make an appointment on 0800 051 1871.
- Can someone else pay into a Stakeholder Pension Plan for me or can I pay for someone else?
- Can I transfer another pension into a stakeholder pension plan?
- How do I claim higher rate tax relief on my contributions?
- How much can I pay into may stakeholder pension?
- What happens if I die before I retire?
Can someone else pay into a stakeholder pension for me or can I pay for someone else?
It is possible for someone to pay your stakeholder pension contributions or for you to pay someone else’s contributions. Ask your financial planning adviser about this.
Can I transfer another pension into a stakeholder pension plan?
Yes you may be able to transfer benefits from another pension scheme into a Stakeholder Pension Plan. Ask your financial planning adviser about this.
How do I claim higher rate tax relief on my contributions?
You have to claim any higher rate tax relief through your annual self-assessment tax return. Your accountant or tax adviser can help you with this.
How much can I pay into my Stakeholder pension?
There is a maximum amount you can pay into your plan and claim tax relief on. This depends on whether you pay tax or not.
| 2009/10 | Annual limit |
|---|---|
| Tax payer | 100% of your earnings (up to £245,000) or £3,600 whichever is higher |
| Non-tax payer | £3,600 |
You may also be interested in:
Cash ISAs – let you save up to £5,100 every tax year, and you don’t pay any tax on the growth in your account.
Looking for more choice?
With a personal pension you can access a much wider choice of investment funds.
Get in touch
We’re here to help you cut through the complexities of retirement.
Contact us today for an appointment with one of our Financial Planning Managers.
Call us on
0800 051 1868*
*Minicom 0800 404 6161. Lines are open: Mon to Thurs 8am-8pm, Fri 8am-6pm,
Sat 9am-5pm (excl. public holidays).
Calls may be recorded