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Stakeholder Pensions

Minimum stakeholder pension requirements

Stakeholder pensions have been designed to offer investors value for money, flexibility and security. At present, the minimum standards include:

Limit on annual management charges:

  • The annual management charge must be 1.5% or less for the first ten years of the plan, reducing to 1% after ten years.


  • To be able to pay as little as £20 per month, the choice to pay your premiums weekly, monthly or at less regular intervals.
  • To be able to stop and start contributions when you want and to change the level of contributions as you wish without incurring a penalty.
  • The option to switch to a different pension provider free of charge.


  • The scheme must be run by trustees or by an authorised stakeholder manager, whose responsibility will be to make sure that the scheme meets the various legal requirements.

If you are considering a stakeholder pension but you are unsure as to whether this will meet with your requirements, the Money Advice Service’s ‘Stakeholder Pension Decision Tree’ is designed to help you -

The Money Advice Service is an independent organisation funded by the financial services industry and you’ll find lots of information about pension planning and other personal financial matters on their website - click here.

Please do not hesitate to contact us for more details, if you have any questions about stakeholder pensions in general, or if you require any literature for the pension detailed above.

Remember: we cannot offer you advice. If you are unsure about your pension planning and require help you should contact a suitably qualified financial adviser.

Here’s an idea:
Why not think about investing £2,880 for your child or grandchild? The government will add another £720, taking the total amount to £3,600. You can do this every year if you want and there’s plenty of time for the funds to grow because they’ll be locked away until retirement.

...Parents - did you know that under current legislation saving for your child (under 18) could increase your personal tax bill? Although you are entitled to give your child as much as you like, if you investment money which earns more than £1000.00 2017/18 interest or £5,000.00 2017/18 dividends each year, the interest and / or dividends will be taxed as if it were your income. Income generated by pensions is not subject to income tax on any gains arising and will not be added to your tax bill. Depending on your circumstances, this could save you considerably.

CommShare doesn't give investment advice. If you're unsure about suitability, you should seek professional advice. Past performance of an investment is not a guide to future performance. The value of investments or income from them can go down as well as up. You might not get back the amount you invest. Current tax levels and reliefs will depend on your individual circumstances.

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CommShare Ltd is Authorised and Regulated by the Financial Conduct Authority.