In detail

It's a plan that's designed to build up a sum of money in a tax-efficient way, to provide you with an income when you retire. It's also flexible. You can choose to increase your payments at any time, or even take a break for a while. And if you move jobs, you can carry on with your plan or request to transfer it to your new employer's pension scheme without any penalties. Tax treatment depends on your individual circumstances and may be subject to change in the future.

One of the greatest strengths of a Stakeholder Pension is its flexibility. Almost anyone can have one (provided you are a UK resident) even if you're already a member of an employer's scheme, or hold a personal pension.

The Financial Services Authority (FSA) has designed what it calls Decision trees which can help you decide if a Stakeholder Pension is a good choice for you.

To help you understand how pensions - including Stakeholder Pensions - work, we've created a useful Beginner's guide.

Written in straightforward, jargon-free language, it will explain why you need to prepare for the future; what you might get from the State Pension; and what your options are.

Most private pensions have annual charges (and sometimes initial set-up charges) to pay for the management of the pension funds your money is invested in. With Stakeholder Pensions, the Government has set a maximum limit on annual charges: 1.5% of the money invested for the first ten years, which then drops to 1%. We currently charge only 1% throughout the life of your Stakeholder pension. There are no separate set-up charges. However, if you apply online you will receive a 20% discount on the annual fund charge and the discount applies for the term of the contract.

What you get will depend on what you put in, how long you keep making payments, how investments perform, the tax treatment of your plan and annuity rates when you choose to take your benefits.

You can normally start taking all or part of your pension between ages 55 and 75, unless you retire prior to 6 April 2010, in which case the minimum age is 50. Once you've decided how much income you think you'll need and when you want to take it, you can work out how much you might need to save to reach your retirement goal.

Use our simple Pension calculator to get an idea of how much you might need to save.

Once you've started your plan, you can check how your pension pot is doing online. We'll also send you annual updates of your pension plan value along with an illustration of what you may get at retirement if certain assumptions are met. Also, because you will have chosen the funds your money is invested in, you can check those fund prices every day, if you wish.

If you have more questions about Stakeholder Pensions, our FAQs may help to answer them.

If not, please Contact us.