Skip to main content

  • Home
  • About Us
    • - About us
    • - Our Team
  • Services
    • - Financial Planning
    • - Protection
    • - Savings & Investments
    • - Business Protection
    • - Mortgages
    • - Equity Release
    • - Pensions
    • - Wealth Management
    • - Taxation

    Professional financial planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions about your financial future, in the short, medium and long term.Read More

    There are events we can all face that have the potential to wreck lives and families. It’s a difficult issue to think about, but imagine the impact on you and your family should the main earner in your household die or become seriously ill. It may not happen to you – we hope it doesn’t – but it might.Read More

    Often, people save for a specific reason and it's usually the safest way to build up a pot of money. It’s less risky than investing, but it offers limited growth. The most you'll earn on the money you save is the interest added. Saving is perfect for people who don’t want to take any risks with their money, and most savings accounts have easy access or are for a fixed term.Read More

    Every business needs to protect itself. For most businesses the most valuable asset it has is its people. Without them, a company’s survival could be at serious risk. With that in mind we can help you take the right steps to protect your people and your business.Read More

    Mortgages are loans which are intended to help buyers purchase residential property. When you take out a loan, the lender charges interest: the same is true of a mortgage. A mortgage is a ‘secured’ loan, which means that the loan is secured against the property being purchased until the mortgage is paid off.Read More

    If you're over the age of 55, equity release offers you a way to use the value of your home to raise money. It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.Read More

    When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large inheritance or windfall, then you need to provide yourself with a secure income for the rest of your life.Read More

    Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances.Read More

  • Enquiry Forms
    • - General Enquiry
    • - Mortgage Enquiry
    • - Protection Enquiry
    • - Investment Enquiry
    • - Pension Enquiry
    • - Attitude to Risk Profiler
  • Useful links
    • - Research
    • - Market Data
  • Literature
  • Privacy Policy
  • Contact Us
Menu
  • Home
  • About Us
    • About us
    • Our Team
  • Services
    • Financial Planning
    • Protection
    • Savings & Investments
    • Business Protection
    • Mortgages
    • Equity Release
    • Pensions
    • Wealth Management
    • Taxation
  • Enquiry Forms
    • General Enquiry
    • Mortgage Enquiry
    • Protection Enquiry
    • Investment Enquiry
    • Pension Enquiry
    • Attitude to Risk Profiler
  • Useful links
    • Research
    • Market Data
  • Literature
  • Privacy Policy
  • Contact Us
Related Topics
Home    Stakeholder

Stakeholder

Stakeholder Pension Schemes

A Stakeholder Pension (SHP) is a type of Personal Pension Plan designed to provide an optional lump sum and income in retirement. In common with a Personal Pension Plan, Stakeholder Pensions are available to any United Kingdom resident under the age of 75.

You, in conjunction with your adviser, choose the pension provider and make the arrangements for paying the contributions to the plan.

You can start a SHP even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension. You don’t have to be working to take out a SHP and you can also provide a SHP for your spouse/partner or your child/children.

When you contribute to a SHP, your money is invested by the pension provider (usually an insurance company) to build up a fund/pension pot over a number of years.

A Stakeholder Pension incorporates a set of minimum standards established by the government, which include:

  • A capped charging structure which is a maximum of 1.5% per year for the first 10 years and 1% per year thereafter
  • The minimum contribution is £20 per month
  • You can pay in lump sums whenever you want
  • You can stop and start payments as you wish
  • You can switch to another scheme at any time without penalty
  • You do not need to retire to draw your stakeholder pension benefits. You can take benefits from age 55
  • At retirement, the option exists to take a quarter of the fund as a tax-free amount

The key point about SHPs, as with any other pension, is to start contributing as early as possible and keep making contributions for as long as possible. That way your pension pot has time to build up and the investment returns compound through reinvestment over many years. The result should be a significant sum of money to invest when you retire.

If you die before age 75 and you have not started to take benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of inheritance tax. Other tax charges may apply depending on the circumstances.

It is possible to continue past age 75 without taking benefits. If you die after age 75 your pension pot can still be passed to a nominated beneficiary free of inheritance tax, however if paid as a lump sum, tax at the beneficiary's marginal rate will apply (2022/23). If it is paid as an income to your spouse or dependant there will be no initial tax charge, but any income paid would be subject to income tax.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment varies according to individual circumstances and is subject to change.

PENSION ENQUIRY FORM

Your Address

Planning and Retirement

Employment

Existing Pension

Yes
No
Yes
No

Marketing Information

Sensitive Personal Data

We may need to collect sensitive personal data including information about your health, ethnic origin, or criminal prosecutions from third parties such as employers and credit reference agencies, fraud prevention agencies and other similar organisations in order to provide you with the services, for example where you require advice on annuity or protection products.

If you consent to us obtaining your sensitive personal data from third parties referred to above for the purpose of providing you with the services, and sharing it with third party providers and Quilter Financial Planning to obtain quotes on your behalf, for example where we are providing you with annuity or protection advice as part of our services, please tick this box.

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

Stakeholder Pension Schemes

A Stakeholder Pension (SHP) is a type of Personal Pension Plan designed to provide an optional lump sum and income in retirement. In common with a Personal Pension Plan, Stakeholder Pensions are available to any United Kingdom resident under the age of 75.

You, in conjunction with your adviser, choose the pension provider and make the arrangements for paying the contributions to the plan.

You can start a SHP even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension. You don’t have to be working to take out a SHP and you can also provide a SHP for your spouse/partner or your child/children.

When you contribute to a SHP, your money is invested by the pension provider (usually an insurance company) to build up a fund/pension pot over a number of years.

A Stakeholder Pension incorporates a set of minimum standards established by the government, which include:

  • A capped charging structure which is a maximum of 1.5% per year for the first 10 years and 1% per year thereafter
  • The minimum contribution is £20 per month
  • You can pay in lump sums whenever you want
  • You can stop and start payments as you wish
  • You can switch to another scheme at any time without penalty
  • You do not need to retire to draw your stakeholder pension benefits. You can take benefits from age 55
  • At retirement, the option exists to take a quarter of the fund as a tax-free amount

The key point about SHPs, as with any other pension, is to start contributing as early as possible and keep making contributions for as long as possible. That way your pension pot has time to build up and the investment returns compound through reinvestment over many years. The result should be a significant sum of money to invest when you retire.

If you die before age 75 and you have not started to take benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of inheritance tax. Other tax charges may apply depending on the circumstances.

It is possible to continue past age 75 without taking benefits. If you die after age 75 your pension pot can still be passed to a nominated beneficiary free of inheritance tax, however if paid as a lump sum, tax at the beneficiary's marginal rate will apply (2022/23). If it is paid as an income to your spouse or dependant there will be no initial tax charge, but any income paid would be subject to income tax.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment varies according to individual circumstances and is subject to change.

PENSION ENQUIRY FORM

Your Address

Planning and Retirement

Employment

Existing Pension

Yes
No
Yes
No

Marketing Information

Sensitive Personal Data

We may need to collect sensitive personal data including information about your health, ethnic origin, or criminal prosecutions from third parties such as employers and credit reference agencies, fraud prevention agencies and other similar organisations in order to provide you with the services, for example where you require advice on annuity or protection products.

If you consent to us obtaining your sensitive personal data from third parties referred to above for the purpose of providing you with the services, and sharing it with third party providers and Quilter Financial Planning to obtain quotes on your behalf, for example where we are providing you with annuity or protection advice as part of our services, please tick this box.

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

Read less

Wealth Management

Business Protection

Financial Planning

QUICK LINKS

  • Home
  • About Us
  • Our Team
  • Research Links
  • Privacy Policy
  • Contact Us

REQUEST A CALL BACK

NEWSLETTER

CONTACT US

Clearwater Financial Planning Ltd
56 Fore Street
Kingsbridge
Devon
TQ7 1NY
T: 01548 856096
Email Us

Tax Planning is not regulated by the Financial Conduct Authority.

Clearwater Financial Planning Ltd is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the FCA register (https://register.fca.org.uk/s) under reference 440703 and 440718.

Clearwater Financial Planning is registered in England and Wales, No. 05764001. Registered Office: 56 Fore Street, Kingsbridge, Devon, TQ7 1NY.

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

© Copyright 2022 - Adviser Pro - All Rights Reserved

Design and Developed by Adviser Pro © 2022