Children's Stakeholder Pensions
Take control of your retirement
Under current pension legislation parents can save up to £3,600 pa into a stakeholder pension scheme on behalf of their children. The advantages and disadvantages of such an arrangement are:
Advantages:
- Contributions attract tax relief e.g. based on an investment of £1,000 into a stakeholder pension for a child assuming a basic rate of 22% the actual sum invested would be £1,282
- A parent or guardian or grandparent can set up a stakeholder pension and pay the contributions for any number of children under 18.
- The plan can be transferred from one pension stakeholder provider to another without incurring penalties.
- The money is invested for the long term and cannot be accessed until the child reaches 50. This may be percieved as a good or bad thing.
- Many stakeholder pension providers have a range of funds that can be invested in depending on requirements.
Disadvantages:
- Money from the pension fund is only available from age 50.
- There are rules on how pension benefits are taken e.g. Only 25% of the fund can be taken as tax free cash.
If you are interested in examining Stakeholder Pension options for children or grandchildren, then it is advisable to discuss it with a professional pension adviser.
In this respect Eden Personal Financial Planning offer you the benefit of Independent advice from experienced and qualified pension advisers who are able to consult with you about all UK stakeholder pension schemes available therefore offering you comprehensive impartial advice either face to face or direct without any obligation. Their service offers:
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Impartial Independent Advice
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Information, advice and recommendations on new or existing stakeholder pension plans
Alternatively click on stakeholder pension advertising links below: