It is increasingly likely that people will
change jobs during their working life. On
leaving an employer there several options
available which should be explored with
the help of an independent
financial adviser. If you do not make
a decision as to what to do with any preserved
pension then your benefits will automatically
remain with your old employer.
Broadly speaking your
1. Leave the money in the scheme
2. Transfer into a new Personal Pension
Plan or Section 32 plan
3. Transfer into a new company pension.
4. Take the benefits now (if you are over
We are happy to explore
all the above options with you.
If you would like a any further help please
us and we will respond immediately.
Personal Pension Schemes should say: Personal
Pensions and Stakeholder Pensions
What are stakeholder pensions?
Stakeholder pensions are simple, low-cost
'personal' pensions designed to encourage
more people to save for their own retirement.
If you wish, you can take out a stakeholder
pension in addition to any existing pension
scheme you may have in place already. They
are available to almost everybody, including
employees, the self employed and people
not actually working but who can afford
the contributions. It's also possible to
pay into someone else's stakeholder pension
- for instance, a child's or a non-working
Stakeholder Pensions have been available
since April 2001.
Why are they special?
Because the Government has set out certain
standards which they must meet - they must:
* be simple and easy to understand
* be flexible
- Payments can start
and stop without penalty
- Transfers must be accepted from other
stakeholder schemes and transfers out
made without penalty
- The minimum payment cannot be more than£20
- Payments can be weekly, monthly or at
- Payments can be regular or singly, one-off
* give value for money
- charges must not exceed 1% of the value
* be easy to obtain
- for example, through employers (where
applicable) and over the internet
There are other more detailed rules, of
course, but the above are the most important
How much can be invested?
Normally, a maximum of £3,600 per
annum including tax relief - more in some
What about tax relief?
Contributions are made net of basic rate
tax and higher rate relief can be claimed
through self assessment tax returns. The
scheme provider then claims the basic rate
tax relief back from the Inland Revenue
and adds it to the employee's plan.
What if I am not employed?
You can pay into a stakeholder scheme even
if you are not working (up to £3,600
per annum including tax relief.)
Can I save for my children?
Yes, parents can make contributions on
behalf of their children
(up to £3,600 per annum including