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Best Stakeholder Pension Providers

Updated On:
Feb 28, 2021
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· 4 min read
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Contents:

What is a Stakeholder Pension

A stakeholder pension is a type of personal pension that must meet minimum standards set by the government.


These minimum standards include:

  • Capped charges, 
  • Free transfers, 
  • Low minimum contributions, 
  • Flexible contributions (you can stop and start payments when you want), and 
  • A default investment fund (if you don't want to choose investments).


Due to their flexibility, stakeholder pensions can be of particular benefit if you're self-employed, on a low income, or not working.

How do Stakeholder Pensions Work

You can get a stakeholder pension from investment platforms, insurance companies, or high street banks. 


Your employer can also arrange your stakeholder pension. If a stakeholder pension is provided through your employer, they will have chosen the pension provider and might also arrange for contributions to be paid from your wages or salary. In most cases, your employer will contribute to your pension pot as well.

See, Workplace Pension Scheme - Auto Enrolment

Tax Relief on Stakeholder Pensions

The government will usually add money to your stakeholder pension in the form of tax relief (free money).


For every £80 you put into your pension, the government adds £20 - and you can claim an extra £20 if you're a higher earner.


You can think of tax relief as a refund of the tax you originally paid on your pension contribution, at your usual rate of income tax - 20%, 40%, or 45%. 


It's your pension provider who claims this tax relief at the basic rate and adds it to your pension. Tax relief for higher rate taxpayers is slightly different. If you're a higher rate taxpayer, you'll need to claim the additional rebate through your tax return.

Best Stakeholder Pension Providers

Compare stakeholder pension providers below:


AJ Bell Youinvest
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£1,000 lump-sum. No minimum for a regular payment
Annual Platform Fee
0.25% - 0% (capped at £10 per month for shares)

If you are confident about picking your investments, AJ Bell Youinvest has thousands of investments for you to choose from, including shares, funds, investment trusts, and ETFs. And you can manage them online or with its mobile app. If you need help choosing, it has four ready-made portfolios and other investment ideas. AJ Bell Youinvest does not offer advice. Capital at risk. Pension rules apply.

LEARN MORE
Interactive Investor
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£0
Annual Platform Fee
 £240 (£19.99 per month)

Interactive Investor has more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. You get a free trade every month, which you can use to buy or sell any investment. It also has several ready-made funds and expert ideas to make it easy to choose investments. Finally, Interactive Investor charges a flat fee of £19.99 per month, so you know exactly how much you will be paying each month.

LEARN MORE
Legal & General's Logo
Product
SIPP
Account Type
Ready-made
Minimum Contribution
£100
Annual Platform Fee
0.25%

Legal & General have five multi-index low-cost ready-made funds, each with a different level of risk that may suit your needs. You’ll also benefit from an easy-to-use online account.

LEARN MORE
Vanguard Investor'
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£500 lump sum or £100 per month
Annual Platform Fee
0.15% (capped at £375 per year)

Vanguard is a popular low-cost investment platform with over 70 funds. Vanguard gives you the flexibility to choose a ready-made portfolio or build your own. Each ready-made fund portfolio gives you access to thousands of bonds and shares in a single investment.

LEARN MORE
Aviva's Logo
Product
Stakeholder Pension
Account Type
Ready-made
Minimum Contribution
£20 per month
Annual Fund Management Cost
Capped at 1%

Aviva lets you start your Stakeholder Pension with as little as £20 a month. And you can change that amount or stop and start payments when you need to.

LEARN MORE
Standard Life
Product
Stakeholder Pension
Account Type
Self-select & Ready-made
Minimum Contribution
£16
Annual Fund Management Cost
Capped at 1%

Standard Life offers straightforward investment options for you to choose from. You can choose from two strategic lifestyle profiles, which invest your money in funds and moves them as you get closer to retirement. If you don't want to choose a fund, that's fine too. Standard Life will automatically invest your money into a Lifestyle Profile.

LEARN MORE
Aviva's Logo
Product
Stakeholder Pension
Account Type
Ready-made
Minimum Contribution
£20 per month
Annual Fund Management Cost
Capped at 1%

Aviva lets you start your Stakeholder Pension with as little as £20 a month. And you can change that amount or stop and start payments when you need to.

LEARN MORE
Standard Life
Product
Stakeholder Pension
Account Type
Self-select & Ready-made
Minimum Contribution
£16
Annual Fund Management Cost
Capped at 1%

Standard Life offers straightforward investment options for you to choose from. You can choose from two strategic lifestyle profiles, which invest your money in funds and moves them as you get closer to retirement. If you don't want to choose a fund, that's fine too. Standard Life will automatically invest your money into a Lifestyle Profile.

LEARN MORE
AJ Bell Youinvest
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£1,000 lump-sum. No minimum for a regular payment
Annual Platform Fee
0.25% - 0% (capped at £10 per month for shares)

If you are confident about picking your investments, AJ Bell Youinvest has thousands of investments for you to choose from, including shares, funds, investment trusts, and ETFs. And you can manage them online or with its mobile app. If you need help choosing, it has four ready-made portfolios and other investment ideas. AJ Bell Youinvest does not offer advice. Capital at risk. Pension rules apply.

LEARN MORE
Interactive Investor
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£0
Annual Platform Fee
 £240 (£19.99 per month)

Interactive Investor has more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. You get a free trade every month, which you can use to buy or sell any investment. It also has several ready-made funds and expert ideas to make it easy to choose investments. Finally, Interactive Investor charges a flat fee of £19.99 per month, so you know exactly how much you will be paying each month.

LEARN MORE
Legal & General's Logo
Product
SIPP
Account Type
Ready-made
Minimum Contribution
£100
Annual Platform Fee
0.25%

Legal & General have five multi-index low-cost ready-made funds, each with a different level of risk that may suit your needs. You’ll also benefit from an easy-to-use online account.

LEARN MORE
Vanguard Investor'
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£500 lump sum or £100 per month
Annual Platform Fee
0.15% (capped at £375 per year)

Vanguard is a popular low-cost investment platform with over 70 funds. Vanguard gives you the flexibility to choose a ready-made portfolio or build your own. Each ready-made fund portfolio gives you access to thousands of bonds and shares in a single investment.

LEARN MORE
Aviva's Logo
Product
Stakeholder Pension
Account Type
Ready-made
Minimum Contribution
£20 per month
Annual Fund Management Cost
Capped at 1%

Aviva lets you start your Stakeholder Pension with as little as £20 a month. And you can change that amount or stop and start payments when you need to.

LEARN MORE
Standard Life
Product
Stakeholder Pension
Account Type
Self-select & Ready-made
Minimum Contribution
£16
Annual Fund Management Cost
Capped at 1%

Standard Life offers straightforward investment options for you to choose from. You can choose from two strategic lifestyle profiles, which invest your money in funds and moves them as you get closer to retirement. If you don't want to choose a fund, that's fine too. Standard Life will automatically invest your money into a Lifestyle Profile.

LEARN MORE

Frequently Asked Questions

1. Are stakeholder pensions still available?

Yes, stakeholder pensions are still available. You can get a stakeholder pension from companies like Aviva and Standard Life above.

2. How much can I pay into a stakeholder pension?

You can pay 100% of your earnings into your stakeholder pension every year up to a maximum of £40,000 (in 2020/21). The £40,000 limit is known as your annual allowance.

3. Can you cash in a stakeholder pension early?

You usually can't cash in your stakeholder pension pot before you're 55 years old (increases to 57 in 2028), but there are some rare cases when you can, e.g., if you are too ill to work or if you have a severe illness which means you're expected to live for less than a year.


In the case of the State Pension, the earliest you can get that is when you reach your State Pension age. If you're currently aged between 20 and 39, your State Pension age will likely be 68. If you retire before this age, you'll have to wait to claim your State Pension.

If you have more questions, ask the community!

You might also like 🤓

  1. Best Pension Providers - Personal Pensions
  2. Self-employed Pension
  3. Workplace Pension
  4. Introduction to Pensions


Credits 

  1. Gov.uk
  2. Money Advice Service
  3. The Pensions Advisory Service


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