Stakeholder Schemes

Question 1

What is a stakeholder scheme?

Answer 1

Is a personal pension plan which originally was a government initiative aimed at providing low-cost pension solutions with a simplified advice process.

Also a defined contribution pension.

Question 2

True or False?

The minimum gross contribution to start a stakeholder pension is £20.

Answer 2

True.

Stakeholder pension plans must have a minimum gross contribution of £20 or less, whether contributions are made regularly or as one-offs.

Question 3

What are the maximum annual charges for a stakeholder pension?

Answer 3

Maximum annual charges apply

• 1.5% AMC in first 10 years
• Reducing to 1% thereafter
• No transfer penalties

Question 4

Members of a Stakeholder pension scheme must receive information regarding their plan within how many months of the statement date?

• A. Six
• B. Five
• C. Three
• D. One

Answer 4

C. Three