Which is the Best Stakeholder Pension?

Stakeholder pension is a type of personal pension that has to meet certain standards set by government. It is said to be money purchase pensions where an individual can take it whether employed or self employed. It was introduced in the UK on the 6th of April in 2001 so as to encourage more long term saving for retirement.

The best stakeholder pension is the one with no great record when it comes to equity funds, and they are not bad with bonds and property. It is good to select a firm that offers funds run by external managers. Stakeholder pensions were introduced five years ago as a flexible, cheap and alternative to traditional personal pensions.

The best stakeholder’s pensions are pension where contributions are charged at 1% annually, free advice is offered and flexibility is assured. The stakeholder’s pension was introduced by the government to counter the well founded criticisms of high charging personal pensions.

Stakeholder pensions are low cost pensions that people can take out to boost their income on retirement. It aims to provide a low-cost, transparent and flexible way for people on low incomes to make additional provisions for their retirement. Money invested in stakeholder pensions is invested in the stock market.

One of the best stakeholder pension schemes is the 'Friends Provident'. It is run by the F and C Asset Management and it offers annual charges of only 0.9, 0.8 and 0.75 per cent for funds worth £20,000, £50,000 and/or more than £100,000 respectively. Other good stakeholder pensions are 'Scottish Widows' as well as 'Legal and General'.