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 options are:

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 50)

We are happy to explore all the above options with you.

If you would like a any further help please email 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 partner's.

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 after tax
• Payments can be weekly, monthly or at other intervals
• Payments can be regular or singly, one-off

* give value for money

• charges must not exceed 1% of the value annually
  

* 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 points.

How much can be invested?

Normally, a maximum of £3,600 per annum including tax relief - more in some circumstances.

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 tax relief.)