All men think of leisurely post retirement life filled with love and happiness. If you love shopping and buying expensive clothes or things that does not mean you should cut down on them after retirement. This entire idea is often related to different investments made for future needs. If planned well post retirement life can be free from any kind of financial burdens and family responsibilities. There are many retirement plans and schemes in the market and one of them is ‘Stakeholder Pension Plan’.
It is a type of personal pension scheme. It works just like the other pension plans where you need to contribute a certain amount regularly to build your retirement funds over time. The managers of the stakeholder scheme invest the pension funds on your behalf. The value of these funds will depend on how much the person has contributed and how well the fund’s investments have performed. It is always good to make regular contribution payments as possible, but the pension holder can stop payments for a while without any penalty. However, it means the pension holder will have smaller pension fund amount unless he makes extra payments later to cover the lapse.
There are numerous benefits of this plan. When the pension holder reaches the age of retirement he can use his pension funds to buy an annuity. This is a regular income, which he can buy from any reputed insurance company to reap good benefits. Most people wait until they are 65 years of age until drawing on their stakeholder funds; however they have an option to draw these funds while still working. Another benefit is that if a pension holder wants to switch from their current plans to another plan he will not be charged any financial fee or penalty from the current pension provider like in other plans. Also, in this plan the individual can start his contributions from as little as £20, and pay weekly, monthly or at less regular intervals. He has the option of stopping, re-starting or changing the contributions whenever he wants without any financial loss or fees. It is considered the most flexible plans due to number of benefits provided to the people. It is always safe to compare different pension plans in the market by taking a free pension review to find the right retirement pension scheme to invest in. This plan is also low cost in running and gives high returns in the future.
Benefits of investing in Stakeholder Pension Plan