Stakeholder pensions

Have you started investing in a pension? Thinking about your financial needs in later life may seem far away, but it's never too early to start a pension for yourself or a child. For every day that you hesitate, that's less money saved to enjoy and support yourself financially when you need it. Anyone can begin putting money aside into a Stakeholder pension for a child - and starting early gives the pot more chance to grow and is a great way to help ease concern for their financial future. We have over 60 years' worth of experience in the pension market and our Stakeholder Pension Plan offers a simple, tax-efficient way to save.

Risks and important information:

  • All investments and funds carry an element of risk. It's important you read the PDF file: Stakeholder Pension Plan Key Features PDF size: 373KB   and the accompanying fund brochure,  PDF file: Choosing your investment fund W13814 PDF size: 564KB   for information about the risks.

  • The value of the investments that make up the pension pot can fall as well as rise, and is not guaranteed. It is particularly important to remember this if you are close to accessing your pension pot.

  • Any money invested is tied up until the plan holder accesses their pension pot, currently any time from age 55.

  • The information detailed is based on our understanding of current law relating to pensions. Tax treatment depends on individual circumstances and may be subject to change in the future.

Our Stakeholder Pension Plan at a glance

Our Stakeholder Pension Plan aims to build up a pension pot that will provide the plan holder with a pension income and/or cash lump sum when they need it after age 55.

  • You can invest from as little as £20 gross, but the more you put into the pension plan, the better the chance it has of supporting your or the child's needs in the future. Take a look at our handy pension calculators to find out more.
  • It's flexible - you can stop, start, increase or decrease your regular contributions, and pay in lump sums at any time.
  • You can manage the pension plan through our secure online service, My Account, so you can see how the investments are performing.
  • When a child reaches their 18th birthday, they'll take ownership of the pension plan and will be able to make decisions on its management.
  • It's easy to apply for our Stakeholder Pension Plan - it only takes 10-15 minutes to complete online.

Choice of funds

We offer a range of investment funds.

  • The money paid into the plan is put into one or more investment funds of your choice, with the overall aim of growing the pension pot.
  • We offer a range of investment funds, some managed by us and others managed by specially selected external fund managers, so you can choose the type of investment that suits you. Read our Stakeholder investment choices page for more information.
  • If you don't make an investment fund choice, we'll invest your contributions into our default option, the Multi-Asset Lifestyle Profile.
  • You can also change funds online through our online service, My Account.


  • The Government sets a maximum charge for Stakeholder pension schemes that all companies must adhere to. Currently, the maximum charge is 1.5% a year of the pension pot value for the first 10 years of a plan, reducing to 1% a year thereafter.
  • Our charges for online applications are lower than the Government maximum rates. The basic annual management charge is tiered according to the value of the pension pot.
  • As the pot grows, the rate of charge decreases:
Pension pot value band Current rate of basic annual management charge applicable to band
 £0 to £25,000  1.0%
 £25,001 to £50,000  0.9%
 £50,001 and over  0.8%

For example, if your investment in our funds is worth £40,000 throughout the year, the basic annual management charge would be £385.

This is calculated as: (£25,000 x 1.0%) + (£15,000 x 0.9%), which is £250 + £135 = £385.

The value of the investments that make up the pension pot can fall as well as rise, and is not guaranteed.

  • 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 apply using a paper application form, a temporary annual management charge of 0.2% a year will also apply until the pension pot value first reaches £15,000 at the start of a plan month, or until the plan has been running for 10 years, whichever is sooner. Full details can be found in the paper application pack, which you can request by calling us on 03459 932 584. Call charges will vary and we may record and monitor calls.
  • We can increase our charges but we'll let you know at least 30 days before we make any change. The reasons we might do this are listed in the PDF file: Stakeholder Pension Scheme Member's Policy Booklet W10578 PDF size: 234KB
  • Our total annual management charge will not exceed the maximum charge as set out by the Government.

Tax-efficient savings

Our Stakeholder Pension Plan offers the chance to make tax-efficient savings.

  • Saving in a pension plan allows you to take advantage of the tax relief offered by the Government. We add tax relief up to the basic rate, which we reclaim from HM Revenue & Customs on the contributions you make. 
  • If you are contributing for a child who has no taxable earnings, the maximum gross contribution that you can get tax relief on is £3,600 in a tax year. If the child has relevant UK earnings, you can pay in up to the amount of these earnings in a tax year (net of basic rate tax relief).
  • The law and tax rates may change in the future and the value of tax relief will depend on your individual circumstances. The information detailed is based on our understanding of current law relating to pensions.

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Pension calculators

Work out how much you need to save to help you reach your target retirement income.

Frequently asked questions

Understanding pensions can be confusing. Our Frequently asked questions answer some of the questions you may have.