Following recent pension reforms, you can now withdraw as much of your pension as you want from the age of 55. There are some exceptions that entitle you to access your pension earlier, but you may have to pay high fees. Please note that the age limit to access your pension will be increased from 55 to 57 in 2028.

When can I cash in my stakeholder pension?

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Like all defined contribution pensions, you’re able to withdraw the funds in your stakeholder pension from the age of 55 (57 from 2028). You can take up to 25% as a tax-free lump sum and either withdraw the remaining 75%, use it to purchase an annuity, keep it invested via drawdown or delay drawing it altogether.

How much is a stakeholder pension?

The amount you pay into your stakeholder pension can be as low as £20 per month, and you can pay monthly or weekly. You don’t even have to pay in regularly – you can contribute a lump sum whenever you want. There’s also no limit to the amount you can pay in.

Are stakeholder pensions any good?

If you are self-employed, then a stakeholder pension is often a good idea, because you won’t be automatically enrolled into anything else. Similarly, if you are not working, then it’s a useful place to start with long term investments – not least because of the tax benefits.

Can you cash in a stakeholder pension?

Can you cash in a stakeholder pension early? Most stakeholder pension schemes won’t allow you to withdraw your funds until you turn 55. However, you should be able to move your funds to another stakeholder pension provider. Some pension plans will let you cash in your pension funds early, if you become seriously ill.

Can I open a stakeholder pension?

Stakeholder pensions are a type of individual pension. Some employers offer them, but you can also start one yourself.

Do stakeholder pensions still exist?

You can continue paying into an existing stakeholder pension. But you might find you’ll be better off joining your employer’s workplace pension scheme – especially if your employer contributes. Compare the benefits available through your employer’s scheme with your stakeholder pension.

Can I take 25% of my pension every year?

Contact your pension provider if you’re not sure when you can take your pension. You can take up to 25% of the money built up in your pension as a tax-free lump sum. You’ll then have 6 months to start taking the remaining 75%, which you’ll usually pay tax on.

Who is eligible for the state pension in the UK?

Anyone living in the UK is eligible to receive the State Pension if they have a minimum number of qualifying years of National Insurance contributions. Find out more about how the State Pension works Conversely, a private pension is one in which you invest in voluntarily.

Who are the regulated pension companies in the UK?

We include pension companies from our panel. They are regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works. How do we make money from our comparison?

Which is better SIPP or Self Invested Pension?

Self invested personal pension (SIPP): You choose where you invest from a larger list of funds than a personal pension. If you do not want to choose your own pension funds then speak to an independent financial adviser to discuss your options. Is your money protected in a pension?