Do you know that stakeholder pension differ from other personal pension not just because it offers flexibility, but also because of the strict standards it follows? It should, by law, follow minimum standards to guarantee costumers like you that it gives value for money, security and flexibility.
And these standards are: limit on yearly management charges, security and flexibility.
For limit on yearly management charges, this means that:
- For the first ten years under this scheme, managers can charge fees of up to one and half per cent of your pension fund yearly
- For the continuing years, up to one per cent yearly
While for security, sanctioned managers and/or trustees should manage the scheme. And they are responsible in ensuring that the scheme meets all legal requirements.
And for flexibility, this must make sure that you, as the policyholder, are allowed to:
- Start payments even as low as £20. And can be given not just at regular, but also at less regular periods
- Stop, re-start and even change payments whenever desired. And should not be fined when doing so
- Switch to a different provider, and also should not be fined by the provider you leave.