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Stakeholder pension
The flexible, low cost way to save
Under age 75? Want to save in a tax efficient and cost effective way? A stakeholder pension could be right for you.
The final value of your pension fund will depend primarily on how much has been paid in and how well the fund’s investments have performed. The value of investments can fall as well as rise, and you may not get back the full amount you invest.
The RBS Stakeholder Pension Plan is provided and administered by Aviva, one of the UK’s largest insurance companies.
What is a stakeholder pension?
Stakeholder pension plans are low cost, flexible and simple to set up.
Stakeholder pensions share the tax advantages enjoyed by other personal pensions, including:
- Tax relief on your contributions
- Tax efficient growth in your pension fund
- The option to take part of your pension benefit as tax-free cash
Key points about the RBS Stakeholder Pension Plan
- Low minimum savings – start saving from just £20 a month
- Low charges – so more of your money will be invested for your future
- Flexibility – stop and start payments, or alter the amount you pay, whenever you like
- Straightforward investment choice – choose from our two managed funds
- Protecting your fund growth – we’ll gradually move your funds into less risky investments when you’re five years from retirement
Who is it for?
An RBS Stakeholder Pension Plan could be suitable for you if:
- You are employed, self employed or if you don’t work
- You don’t plan to save a lot every month
- You’re not looking for a wide range of investment opportunities
- You want a low cost pension plan
- You’re under age 75
Need help deciding?
A chat with one of our financial planning advisers is without obligation. Call us to make an appointment on 0800 051 1872 .
With the RBS Stakeholder Pension Plan your money is put into stock market investments. This means that your pension fund rises or falls in value depending on the performance of the assets in the fund.
| Starting your plan | Decide how much you want to invest. The minimum monthly contribution is £20 | |
|---|---|---|
| Choose your investment funds | Provided you have at least five years to retirement, you can invest in either the Balanced Managed Lifestyle Strategy Fund or the Defensive Managed Lifestyle Strategy Fund. | |
| Building your fund | Keep paying in to your plan on a regular basis and watch your retirement fund grow. | |
| Approaching retirement | Five years before you plan to retire, we’ll start to switch your money into lower risk funds so that any sudden changes in stock market values have less impact. | |
| When you retire | You can take your benefits whenever you want between age 55 and 75. | |
| Benefits | Tax free cash
| Income Choose how you want to receive your pension income, for example:
|
Ready to start saving?
Have a chat with one of our financial planning advisers for a no obligation review of your retirement plans. Call us to make an appointment on 0800 051 1872 .
You can invest in the Balanced Lifestyle Strategy Fund or the Defensive Managed Lifestyle Strategy Fund. These funds invest in a wide range of assets, including company shares.
| More than five years to retirement | ||
|---|---|---|
| Fund name | Risk level | Description |
| Balanced Lifestyle Strategy Fund | medium | This fund aims to provide capital growth over the long term. The mix of investments gives the possibility of high returns from company shares, but with the safety of spreading the risk over a wide range of assets, including bonds, property and cash. |
| Defensive Managed Lifestyle Strategy Fund | low/medium | This fund aims to provide capital growth over the long term with a low level of risk. The mix of investments aims to achieve a higher level of return than cash alone |
From five years before your retirement, we’ll gradually switch your money into lower risk funds so that when you retire, three quarters of your money will be in the Retirement Protection Fund and the remainder in the Deposit Fund.
| Less than five years to retirement | ||
|---|---|---|
| Fund name | Risk level | Description |
| Retirement Protection Fund | low/medium | This fund aims to track the performance of the FTSE Actuaries UK Gilt Index for gilts with an outstanding term of over 15 years. The fund invests in British Government fixed interest stocks whose performance matches the costs of buying a pension income. |
| Deposit Fund | low | This fund aims to provide a safe return in line with bank and building society interest rates by investing in cash investments with first class banks and major UK companies. The fund has very little risk attached to it. It aims to protect values from falling but is not guaranteed. |
A stakeholder pension is probably the most straightforward, tax efficient way to save for your retirement.
Tax benefits
- Tax relief on your contributions. The amount of tax relief you get depends on your earnings
- Your pension contributions grow in a tax efficient fund
- You can take up to 25% of your pension fund as a tax free lump sum
Price benefits
- Start a Stakeholder Pension Plan from just £20 a month
- Low charges mean that more of your money is invested
Other benefits
- Increase, reduce, stop and restart your contributions whenever it suits you
- Even if you have no earnings, with a Stakeholder Pension Plan you can still save up to £3,600 a year
- You may be able to transfer benefits from another pension plan or company pension scheme to your Stakeholder Pension Plan. You should always take financial advice before you do this
- If you want, you can transfer your Stakeholder pension fund to another pension scheme before you retire
Ready to start saving?
Have a chat with one of our financial planning advisers for a no obligation review of your retirement plans. Call us to make an appointment on 0800 051 1872 .
- Can someone else pay into a Stakeholder Pension Plan for me or can I pay for someone else?
- Can I transfer another pension into a stakeholder pension plan?
- How do I claim higher rate tax relief on my contributions?
- How much can I pay into my stakeholder pension?
- What happens if I die before I retire?
Can someone else pay into a stakeholder pension for me or can I pay for someone else?
It is possible for someone to pay your stakeholder pension contributions or for you to pay someone else’s contributions. Ask your financial planning adviser about this.
Can I transfer another pension into a stakeholder pension plan?
Yes you may be able to transfer benefits from another pension scheme into a Stakeholder Pension Plan. Ask your financial planning adviser about this.
How do I claim higher rate tax relief on my contributions?
You have to claim any higher rate tax relief through your annual self-assessment tax return. Your accountant or tax adviser can help you with this.
How much can I pay into my stakeholder pension?
There is a maximum amount you can pay into your plan and claim tax relief on. This depends on whether you pay tax or not.
| 2009/10 | Annual limit |
|---|---|
| Tax payer | 100% of your earnings (up to £245,000) or £3,600 whichever is higher |
| Non-tax payer | £3,600 |
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What happens if I die before I retire?
With a Stakeholder Pension Plan, the value of your pension fund will be returned to your dependants if you die before you retire.
You might also be interested in
Cash ISAs – let you save up to £5,100 every tax year, with no tax to pay on the growth in your account.
Looking for more choice?
With a personal pension you can access a much wider choice of investment funds.