Stakeholder pension savings are for anyone with any income at all. The stakeholder pension can be started at any age. They are low cost and provide a flexible pension savings option that will supplement income later in life. With stakeholder pensions, there are several forms the pension scheme providers and individuals may need to fill out. Stakeholder pensions are regulated by legislation.
Once income is earned, start saving for your pension as soon as you can. If you are working, find out if your employer is providing an occupational pension scheme. Any employer with five or more employees is required to make a stakeholder pension available if they are not providing any type of pension scheme. If you work for an employer who has less than five employees or is exempt from providing a stakeholder pension, you can start your own.
With a stakeholder pension you will choose the provider and make your own arrangements for a payment schedule. Contributing to this pension will allow you to claim tax relief.
Stakeholder pensions are flexible in several ways.
- Contributions can be raised as allowed by your provider.
- Lump sums may be added when they are available.
- How contributions are invested can be chosen by employee and changed.
- Since they belong to the individual, they can follow an employee when there is a change in employment.
- Up to one quarter can be taken out in a lump sum at retirement without being taxed.
Some of the forms individuals and pension scheme provider may have to fill out.
CA8057-Joint application notice to start minimum contributions.
- individual
- scheme trustee/manager.
- Information needed to fill out form
- Personal pension stakeholder pension scheme information
- scheme member’s details
SHP100-Application to register a scheme
- Filled out by one of the following
- cooperate trustee
- stakeholder manager
- individual
- Information needed to fill out form
- Existing scheme details
- stockholder pension scheme details
- scheme conditions
- cooperate trustee/stakeholder manager information
- scheme auditor and reporting accountant
- other professional advisors
- contact for queries
SHP101-Application for tax approval of stakeholder pension scheme
- Filled out by
- Scheme administrator
- Information needed to fill out form
- existing scheme details
- stakeholder pension scheme details
- scheme rules
- details for tax repayment
- correspondence details
For help on these and other forms, there are guidance notes available.
There is legislation that regulates stakeholder pensions.
HM Revenue and Customs (HMRC) legislation on stakeholder pensions includes; restrictions on discretions on approval (SI 2314), relief at source (SI 2315), information powers (SI 2316), establishment of schemes (SI 2317). and current membership (SI 2118).
Department of Social Security (DSS) legislation on stakeholder pensions includes the Welfare Reform & Pensions Act Welfare Reform & Pensions Act 1999c.30, the Stakeholder Pension Schemes Regulations 2000 - SI (2000) 1403, the Stakeholder Pension Schemes (Amendment) Regulations 2001 SI - (2001) 104, and the Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 - SI (2001) 934.
