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Best Stakeholder Pension Providers

Updated:
Apr 27, 2021
An alarm clock
Β· 4 min read
Best Stakeholder Pension Providers

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Contents:

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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,Β 
  • Free transfers,Β 
  • Low minimum contributions,Β 
  • Flexible contributions (you can stop and start payments when you want), andΒ 
  • 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.

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How do Stakeholder Pensions Work

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


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

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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 Β£80 you put into your pension, the government adds Β£20 - and you can claim an extra Β£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%.Β 


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 some of the best stakeholder pension providers below:

‍

You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.

‍

Capital at risk. Other charges may apply.

‍

Aviva - Ready-made

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

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

GO TO SITE

Standard Life - DIY & Ready-made

Standard Life
Product‍
Stakeholder Pension
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£16
Annual Fund Management Cost
‍
Capped at 1%

Standard Life offers straightforward investment options. 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.

GO TO SITE

Best Pension Providers

Compare some of the best pension providers below.

‍

You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.

‍

Capital at risk. Other charges apply.

‍

Interactive Investor - One free trade every month; Lots of research

Interactive Investor
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£0
Annual Platform Fee‍
Β Β£240 (Β£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. Interactive Investor charges a flat fee of Β£19.99 (Platform + SIPP fee) per month, so you know exactly how much you will be paying each month.

Special offer: Open a SIPP and pay no SIPP admin fee for 6 months. Terms apply.

GO TO SITE

Hargreaves Lansdown - Lots of investment options, research and tips

Hargreaves Lansdown
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£100 lump sum or Β£25 per month
Annual Platform Fee‍
0.45% - 0% (Funds)
0.45% (Shares - max Β£200/year)

Hargreaves Lansdown has thousands of investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone. Hargreaves Lansdown also offers Stocks and Shares ISA, Lifetime ISA, Junior ISA, and Fund and Share Account. These services are intended for investors happy at making their own decisions. Capital at risk. Other charges apply.

GO TO SITE

AJ Bell Youinvest - Mid-price range; Lots of investment options

AJ Bell Youinvest
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£1,000 lump-sum. No minimum for a regular payment
Annual Platform Fee‍
0.25% - 0% (Funds)
0.25% (Shares - max Β£10/month)

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.

GO TO SITE

Moneyfarm - Mid-price range; Offers advice and ESG investments

Moneyfarm Logo
Product‍
SIPP
Account Type
Ready-made
Minimum Contribution‍
Β£500
Annual Platform Fee‍
0.75% - 0.35%

Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, so you can be sure you've got a good mix of hard-working assets handpicked from around the world. You also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. Tell Moneyfarm when you aim to retire, and it will manage your portfolio around your target retirement date - reducing your risk as the date approaches. Moneyfarm's products include Stocks and Shares ISA, General Investment Account, and Personal Pension.

GO TO SITE

Vanguard - Low cost, capped at Β£375 per year

Vanguard Investor'
Product‍
SIPP
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£500 lump sum or Β£100 per month
Annual Platform Fee‍
0.15% (max Β£375/year)

Vanguard is a popular low-cost investment platform with over 70 funds. It gives you the flexibility to choose a ready-made portfolio or build your own. Vanguard's products include SIPP, Stocks and Shares ISA and Junior ISA.

GO TO SITE

Aviva - Stakeholder Pension - Ready-made

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

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

GO TO SITE

Standard Life - Stakeholder Pension - DIY & Ready-made

Standard Life
Product‍
Stakeholder Pension
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£16
Annual Fund Management Cost
‍
Capped at 1%

Standard Life offers straightforward investment options. 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.

GO TO SITE

Best Pension Providers for Self-employed People

Compare some of the best pension providers for self-employed people below:

‍

You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028) when you can take 25% as a tax-free lump sum.

‍

Capital at risk. Other charges apply.

‍

AJ Bell Youinvest - Mid-price range; Lots of investment options

AJ Bell Youinvest
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£1,000 lump-sum. No minimum for a regular payment
Annual Platform Fee‍
0.25% - 0% (Funds)
0.25% (Shares - max Β£10/month)

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.

GO TO SITE

Hargreaves Lansdown - Lots of investment options, research and tips

Hargreaves Lansdown
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£100 lump sum or Β£25 per month
Annual Platform Fee‍
0.45% - 0% (Funds)
0.45% (Shares - max Β£200/year)

Hargreaves Lansdown has thousands of investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone. Hargreaves Lansdown also offers Stocks and Shares ISA, Lifetime ISA, Junior ISA, and Fund and Share Account. These services are intended for investors happy at making their own decisions. Capital at risk. Other charges apply.

GO TO SITE

Interactive Investor - One free trade every month; Lots of research

Interactive Investor
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£0
Annual Platform Fee‍
Β Β£240 (Β£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. Interactive Investor charges a flat fee of Β£19.99 (Platform + SIPP fee) per month, so you know exactly how much you will be paying each month.

Special offer: Open a SIPP and pay no SIPP admin fee for 6 months. Terms apply.

GO TO SITE

Moneyfarm - Mid-price range; Offers advice and ESG investments

Moneyfarm Logo
Product‍
SIPP
Account Type
Ready-made
Minimum Contribution‍
Β£500
Annual Platform Fee‍
0.75% - 0.35%

Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, so you can be sure you've got a good mix of hard-working assets handpicked from around the world. You also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. Tell Moneyfarm when you aim to retire, and it will manage your portfolio around your target retirement date - reducing your risk as the date approaches. Moneyfarm's products include Stocks and Shares ISA, General Investment Account, and Personal Pension.

GO TO SITE

Vanguard - Low cost, capped at Β£375 per year

Vanguard Investor'
Product‍
SIPP
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£500 lump sum or Β£100 per month
Annual Platform Fee‍
0.15% (max Β£375/year)

Vanguard is a popular low-cost investment platform with over 70 funds. It gives you the flexibility to choose a ready-made portfolio or build your own. Vanguard's products include SIPP, Stocks and Shares ISA and Junior ISA.

GO TO SITE

Aviva - Stakeholder Pension - Ready-made

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

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

GO TO SITE

Standard Life - Stakeholder Pension - DIY & Ready-made

Standard Life
Product‍
Stakeholder Pension
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£16
Annual Fund Management Cost
‍
Capped at 1%

Standard Life offers straightforward investment options. 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.

GO TO SITE

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 tax year up to a maximum of Β£40,000. The Β£40,000 limit is known as your annual allowance, and it is the maximum amount you can pay into any pension in one tax year and benefit from tax relief.

‍

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!

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You might also like πŸ€“

  1. Stakeholder Pension vs SIPP
  2. Best Pension Providers
  3. Best Pension for Self-employed People
  4. Workplace Pension
  5. Introduction to Pensions
  6. Best Stocks and Shares ISA


CreditsΒ 

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


Best SIPP Providers

Compare some of the best SIPP providers in the UK below.

‍

You usually can't access the money in your pension pot until you are at least 55 years old (increases to 57 in 2028), when you can take 25% as a tax-free lump sum.


Capital at risk. Other charges apply.

‍

Interactive Investor - One free trade every month; Lots of research

Interactive Investor
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£0
Annual Platform Fee‍
Β Β£240 (Β£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. Interactive Investor charges a flat fee of Β£19.99 (Platform + SIPP fee) per month, so you know exactly how much you will be paying each month.

Special offer: Open a SIPP and pay no SIPP admin fee for 6 months. Terms apply.

GO TO SITE

AJ Bell Youinvest - Mid-price range; Lots of investment options

AJ Bell Youinvest
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£1,000 lump-sum. No minimum for a regular payment
Annual Platform Fee‍
0.25% - 0% (Funds)
0.25% (Shares - max Β£10/month)

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.

GO TO SITE

Hargreaves Lansdown - Lots of investment options, research and tips

Hargreaves Lansdown
Product‍
SIPP
Account Type
‍
DIY & Ready-made
Minimum Contribution‍
Β£100 lump sum or Β£25 per month
Annual Platform Fee‍
0.45% - 0% (Funds)
0.45% (Shares - max Β£200/year)

Hargreaves Lansdown has thousands of investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone. Hargreaves Lansdown also offers Stocks and Shares ISA, Lifetime ISA, Junior ISA, and Fund and Share Account. These services are intended for investors happy at making their own decisions. Capital at risk. Other charges apply.

GO TO SITE

Moneyfarm - Mid-price range; Offers advice and ESG investments

Moneyfarm Logo
Product‍
SIPP
Account Type
Ready-made
Minimum Contribution‍
Β£500
Annual Platform Fee‍
0.75% - 0.35%

Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences. It has seven globally diversified risk-rated portfolios, including ethical investments. The team at Moneyfarm actively manages your investments, so you can be sure you've got a good mix of hard-working assets handpicked from around the world. You also benefit from free and personalised digital financial advice from Moneyfarm's investment consultants, and you can chat, phone, email, or meet your consultant in person. Tell Moneyfarm when you aim to retire, and it will manage your portfolio around your target retirement date - reducing your risk as the date approaches. Moneyfarm's products include Stocks and Shares ISA, General Investment Account, and Personal Pension.

GO TO SITE

Vanguard - Low cost, capped at Β£375 per year

Vanguard Investor'
Product‍
SIPP
Account Type
DIY & Ready-made
Minimum Contribution‍
Β£500 lump sum or Β£100 per month
Annual Platform Fee‍
0.15% (max Β£375/year)

Vanguard is a popular low-cost investment platform with over 70 funds. It gives you the flexibility to choose a ready-made portfolio or build your own. Vanguard's products include SIPP, Stocks and Shares ISA and Junior ISA.

GO TO SITE
Koody Man with Laptop

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