• Fyfe Financial Limited
  • 119 Ecclesall Road South
  • Sheffield
  • South Yorkshire
  • S11 9PJ
  • Tel: 0114 2621943
  • Fax: 0114 2365849

 

 FFL Logo

 

A REPRESENTITIVE OF PARKWAY INSURANCE SERVICES

Authorised and Regulated by the Financial Services Authority

699 STANIFORTH ROAD, SHEFFIELD S9 4RE  T: 0114 244 2233

 

Registration No 4421513 England

Registered Office: 119 Ecclesall Road South, Sheffield S11 9PJ

Stakeholder summary

If you just want a quick overview of what a stakeholder pension plan is, look no further!

  • Tax relief on contributions at your highest marginal rate

  • A money purchase scheme

  • Minimum contribution of not more than £20

  • Permissible contribution limit of up to £3,600 pa gross (without evidence of earnings) or 100% of earnings. (subject to the Annual and Lifetime allowance)

  • A single annual management charge of not more than 1.5% of the plan value for the first 10 years, taken from the fund/s. After the 10 years, this reduces to a maximum of 1%. There is no upfront fee.

  • You are free (no charges or penalties) to:
    - Stop, increase, decrease or restart your pension contributions at any time
    - Transfer your money to another stakeholder scheme.

  • All plans will have a default investment choice, this is designed to help make purchasing a Stakeholder pension plan easier, but it doesn’t guarantee the default fund will necessarily be the right one for you, we recommend advice be sought.

Stakeholder: What you get & when

With a stakeholder pension, you are allowed to start taking your benefits at any time between the ages of 50 and 75. Furthermore, you do not have to stop work in order to start taking your pension, although you would be well advised to keep your contributions going and delaying your pension income for as long as possible. Retiring at fifty might sound tempting, but building up enough money to provide a decent retirement income might prove very difficult for most people.

Tax free lump sum

You are allowed to take up to 25% of your pension as a tax-free lump sum at retirement, but doing so will mean only 75% of the fund is left to provide regular pension income after you've retired. In effect then, you are allowed to exchange up to 25% of your pension fund for a tax-free lump sum at retirement
The rest of the fund must be used to provide an income in retirement through the purchase of an annuity. 

 

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