Pensions Guide | Pensions Help Product Information | Is a Stakeholder Pension a Good Choice for Me?

Whether a stakeholder pension is the best choice for you will depend on your particular circumstances. If you are a moderate or higher earner and you want to build a second pension, you should think about a stakeholder pension scheme along with the other pension options.

Stakeholder schemes may also interest you if you are a lower earner or you do not have an income of your own but can afford to save for a pension. If you are self-employed, a stakeholder pension could also be the right option for you.

If you have already joined, or are thinking of joining, another kind of pension scheme, you should ask the scheme provider whether it will be easy and cheap to transfer to a stakeholder pension (or other pension) if this is better for you.

Stakeholder pensions are also an option for people who are not currently working but who can afford to make contributions to a pension. You can also make contributions for children to a stakeholder pension.

In general the earlier you start contributing, and the more you pay into a stakeholder pension, the higher your final pension will be. But you will not be able to draw on any money put into a pension scheme until you retire. If you think you might need some of your savings before you retire, it may be better for you to think about other ways of saving, such as an Individual Savings Account (ISA).