Personal Financial Services
These are basic pension contracts introduced by the government in 2001 that carry a guarantee that the total plan charges will not exceed 1.5% for the first 10 years and 1% thereafter.
Most insurers offer this type of contract and they can be setup with investment sums as low as £20 gross per month.
However due to the charging restrictions they will only offer a limited fund choice (typically between 20 and 50 funds) and at retirement the only option under the contract is to purchase an annuity.
A Stakeholder contract would therefore typically be appropriate for someone who prefers a straight forward contract, and for whom charges are a higher priority than fund selection or flexibility at retirement.
For more information or advice on Stakeholder Pensions, please contact us or request a call back.
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