(Part 2)
A further important consideration is your age. If you are over 50, and your stakeholder pension has a value of �16,000 or less (known as a �trivial amount� for pension annuity purposes), you can get hold of the full amount (with 25% of it tax free), to spend as you please - now. This figure of �16,000 is increased annually, so if you are not yet 50, it is highly likely that you will be able to get hold of the complete amount once you reach 50 (this becomes age 55 in 2010).
Personally, I would go for the last option, leaving the money in the stakeholder pension until I could have it all, (getting hold of all the money for myself), rather than having to buy a pension with my money. But remember the government can always move the goal posts at anytime, and deny you access to your money.