Frequently asked questions
When do I get it?
As with other types of personal pensions, you will usually be
able to start claiming your pension and benefits from the age of 50 (although
by 2010 the qualifying age for all pensions will usually be 55), but the
longer you continue to work and to pay into your scheme, the more money
you are likely to get when you do decide to retire. Most people choose
to wait until they are 60 or 65. However, you don’t have to retire
from work to get your pension benefits.
How much do I pay?
One of the advantages of stakeholder pensions is that you can
choose how much you pay in – and you can make contributions whenever
you have some spare cash. To get the most out of your pension, it is best
to make regular payments if you can, but you can stop payments for a while
if you need to without it costing you anything. But remember that the
less money you put into your pension scheme now, the less you will get
back as income when you retire.
How much do I get?
That depends on how much you have paid into your stakeholder
pension scheme, and how well the scheme’s investments have performed
by the time you retire. Your pension scheme provider will send you a pension
forecast every year that will tell you how much your fund is worth and
how much you can expect to receive when you retire if you continue to
contribute at your current level.
Can I move to a different pension scheme?
If you want to move your stakeholder fund to another pension
provider or another stakeholder pension scheme, there will not normally
be a penalty for making the transfer.
Does my employer have to offer membership of a stakeholder pension
scheme?
Yes – most companies that employ five or more people must
offer their employees a chance to join a stakeholder pension scheme.
Can I still get the additional State Pension?
If you earn between £84 and £240 a week (for 2006/2007),
you will be entitled to receive some additional State Pension even if
you are contributing to a contracted-out stakeholder pension. This is
because of the extra help the additional State Pension gives to people
on lower pay.