Stakeholder pensions for individuals
The charges
The Government's maximum permitted annual management charge for Stakeholder pensions is currently 1.5% a year of the value of your fund for the first 10 years of your pension plan and 1% a year after that. Compared with this, Legal & General's charges for online applications provide great value for money.
Legal & General's basic annual management charge is tiered according to the value of your fund. As your fund grows the rate of charge decreases.
| Retirement Fund Value Bands | Basic Rate of Online Annual Management Charge Applicable to Band |
|---|---|
| Under £25,000 | 1.0% |
| £25,000 up to £50,000 | 0.9% |
| £50,000 and over | 0.8% |
For example, if your investment in Legal & General funds is worth £40,000 throughout the year, the rate of annual management charge would be (£25,000 x 1.0%) + (£15,000 x 0.9%), which is £250 + £135 = £385.
If you decide to invest in any externally managed investment funds, an additional annual management charge (currently 0.15% a year) will apply to your investment in those funds only.
If you are transferring the value of your pension plan into a new Legal & General Stakeholder Pension Plan, an extra charge may apply, as professional advice is provided.
