Being a flexible type of personal pension, defines this scheme. Known as the stakeholder pension, it is so flexible that you could change, stop, and even re-start your contributions whenever you want. And if that does not make it flexible enough for you, it also has limit on annual management charges and very low minimum contributions.
And this feat is not just for show. It should pass minimum standards defined by law to ensure that the service it offer is flexible, secured and gives value to your money.
This, by the way, works just like any other money purchased pensions. To increase your fund, you need to contribute money. And thru a certified manager your fund will be invested.
And based on your contribution and the way your fund’s investment have performed you will know what your fund’s value is. In other words, to increase its value, you need to contribute regularly to your fund, and hope that its investment will perform well.
Though that doesn’t mean that you’re compelled to contribute at all times, remember that because of its flexibility, you are allowed to change, stop and/or re-start payments whenever you desire. Though stopping will not be a good idea, for it will only lessen your fund.