How the scheme works
The Stakeholder scheme allows you, your employer, a third party and HMRC if you contract-out of the State Second Pension, to make tax efficient payments into a personal fund, which is in your name. These contributions are used to buy units in the investment fund(s) of your choice. The size of your personal fund at retirement will depend on how much has been contributed, the length of time over which your personal fund has been invested, how your selected fund or funds have performed and the effect of charges. Please remember that the value of your investments can fall as well as rise and is not guaranteed. This means that you may get back less than you invest.
If you have a pension from a previous employment (employed or self-employed), then you may be able to transfer benefits from that registered pension scheme to this scheme.
From age 50 (this will increase to age 55 from 6 April 2010) you can use your personal fund to provide a pension income. You will usually be able to take up to 25% of your personal fund as a tax free lump sum; however, this will reduce the amount available to provide income. The pension income your fund can provide will depend on annuity rates at the time you take your benefits.
Further information
For specific information relating to your company scheme please refer to your scheme booklet or contact your employer. If you are already a member of your employers’ scheme and have a user name and password you can access your pension online using the following link:
If you need more information regarding the suitability or need advice before joining the scheme, Winterthur Life suggests that you seek advice from a Financial Adviser; you may be charged for this service. If you do not currently have a Financial Adviser you can contact IFA Promotions Ltd on 0800 085 3250 or via their website (www.unbiased.co.uk), who will be able to put you in touch with a Financial Adviser in your area.
