Always remember that investments can go down as well as up in value, so you could get back less than you put in. How you’re taxed will depend on your circumstances, and pension and tax rules can change.

Best Stakeholder Pension Providers

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

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 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 - Stakeholder Pension

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.

GO TO SITE

Standard Life - Stakeholder Pension

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.

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.


Hargreaves Lansdown - SIPP

Hargreaves Lansdown
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£100 lump sum or £25 per month
Annual Platform Fee
0.45% - 0% (Funds)
0.45% (Shares - max £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.

*Affiliate
GO TO SITE

Interactive Investor - SIPP

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. Interactive Investor charges a flat fee of £19.99 per month, so you know exactly how much you will be paying each month.

*Affiliate
GO TO SITE

AJ Bell Youinvest - SIPP

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% (Funds)
0.25% (Shares - max £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.

*Affiliate
GO TO SITE

Vanguard - SIPP

Vanguard Investor'
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£500 lump sum or £100 per month
Annual Platform Fee
0.15% (max £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.

GO TO SITE

Legal & General - SIPP

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

Legal & General has 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.

GO TO SITE

Aviva - Stakeholder Pension

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.

GO TO SITE

Standard Life - Stakeholder Pension

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.

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.

Interactive Investor - SIPP

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. Interactive Investor charges a flat fee of £19.99 per month, so you know exactly how much you will be paying each month.

*Affiliate
GO TO SITE

AJ Bell Youinvest - SIPP

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% (Funds)
0.25% (Shares - max £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.

*Affiliate
GO TO SITE

Hargreaves Lansdown - SIPP

Hargreaves Lansdown
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£100 lump sum or £25 per month
Annual Platform Fee
0.45% - 0% (Funds)
0.45% (Shares - max £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.

*Affiliate
GO TO SITE

Vanguard - SIPP

Vanguard Investor'
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£500 lump sum or £100 per month
Annual Platform Fee
0.15% (max £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.

GO TO SITE

Legal & General - SIPP

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

Legal & General has 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.

GO TO SITE

Aviva - Stakeholder Pension

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.

GO TO SITE

Standard Life - Stakeholder Pension

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.

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 £40,000. The £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!

You might also like 🤓

  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


Credits 

  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 - SIPP

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. Interactive Investor charges a flat fee of £19.99 per month, so you know exactly how much you will be paying each month.

*Affiliate
GO TO SITE

AJ Bell Youinvest - SIPP

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% (Funds)
0.25% (Shares - max £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.

*Affiliate
GO TO SITE

Hargreaves Lansdown - SIPP

Hargreaves Lansdown
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£100 lump sum or £25 per month
Annual Platform Fee
0.45% - 0% (Funds)
0.45% (Shares - max £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.

*Affiliate
GO TO SITE

Vanguard - SIPP

Vanguard Investor'
Product
SIPP
Account Type
Self-select & Ready-made
Minimum Contribution
£500 lump sum or £100 per month
Annual Platform Fee
0.15% (max £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.

GO TO SITE

Legal & general - SIPP

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

Legal & General has 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.

GO TO SITE
Koody Man with Laptop

Subscribe to Our Newsletter

Every month, we send out a newsletter that curates the best personal finance content in the UK. We share the most popular community questions, real-life stories, how-to guides, top personal finance news and tips to help you stay on top of your finances.

Thank you! Your submission has been received!
Error: This email cannot be added because it may already be on our list. Please enter a different email address.

Read a Sample