These are new low cost, flexible, tax-efficient private pensions available to most people under the age of 75. Different guidelines apply for employed, self-employed and people who are not employed; make sure you select the correct category when examining the possibilities.

At Silverpot we are highlighting some conditions (see bullet points) attached to these pensions. We are also giving you directions to find out more personal information on this matter before deciding if this product is for you. REMEMBER IT IS NEVER TOO EARLY TO START CONTRIBUTING FOR YOUR PENSIONS– the earlier you begin the more you will have !!

• Charges are limited to 1% of the value of your fund each tax year.

• You can contribute on a regular or lump sum basis. Most funds accept a minimum £20 monthly payment, a few will accept £10. You can stop paying without penalty and restart later.

• Under present tax rules basic rate taxpayers will pay £78 for every £100 paid into the scheme, higher rate taxpayers will pay £60 for every £100. Non tax payers still qualify for tax relief.
  

• Generally there is a limit of £3,600 per tax year but some exceptions apply.

• Stakeholder pension providers can be insurance companies, banks, building societies or financial service companies etc. But each provider must give annual statements.

• Stakeholder Pensions Helpline - www.stakeholderhelpline.org.uk or call 0845 601 2923.
• DSS Publications -  
  • A guide to your pension options (PM1)
  • Stakeholder pensions – Your guide (PM8)
  • www.dss.gov.uk

Final Tip – Do shop around for the fund that suits your requirements.