stakeholder pension

[dotty.]

I have a stakeholder pension from 30 years ago that I haven't paid into for 28 years, but every year I have had a statement and it has really grown in value. I know that I can probably take a small amount out now that I am 55, I want to go to Las Vegas to see Garth in February, what percentage can I take out and what is it a percentage of exactly?

[twix123]

You may only cash in your Stakeholder Pension when you decide to take the pension, when you can take 25% of the fund value as cash and the remainder must be used to purchase an annuity. You cannot draw the cash element and then wait to buy the annuity at a later date. You need to check the scheme's rules to ensure that you can take the pension from age 55, but it is normally between 55 and 75.

[dasherman]

1) Stakeholder pensions were introduced in 2001 so it's unlikely you have one unless you transferred an old pension into one in the last 9-10 years.

2) You can take 25% of the fund value after 55 and either take the rest as an annuity(income for life) or enter income drawdown which enables you to take a percentage of the fund per year.

3) A pension is to provide an income in retirement not to spend on watching Country music acts is the USA(I'm assuming you're talking about Garth Brooks).

You may find this link useful:
http://www.pensionsadvisoryservice.org.uk

[brenda]

Wow -- dasherman , No 3 was a tad judgemental.Dotty was only asking a question after all.
Not anyone's concern how others spend their cash, I think.

[dotty.]

I think I can spend it on what I like seeing as I put the money in and it;s been there for 30 years. It started when they introduced compulsory works pension schemes back in the early 80s, was that serps?

[dotty.]

spot on brenda, (hi btw) , lol

[dasherman]

OK I was a bit short with that answer - sorry for any offence but you may just need that money in your retirement.

I think you'll find they're only just getting round to introducing compulsary company pensions in 2012 and SERPS now renamed State Second Pension(S2P) is a top up to your state pension based on your national insurance contributions over your life, so I'm not too sure what it is you've got.

[factor-fiction]

If it is SERPS I don't think you can take it yet.
Was it a personal pension?
If you only paid into it for 2 years I'd be surprised if it had a great value but good luck to you if it has. The 25% tax free lump sum is useful but the regular monthly/annual payments are unlikely to be anything significant given the low rates payable on annuities

[dotty.]

Right I've found it all now, it;s a defined benefit plan with the House of Fraser, a contracted out of serps plan. my other one that i started in 1999 is a stakeholder with scottosh life , i've found that now too.

[factor-fiction]

Well you can probably draw it now then. I had a tiny pension pot from a similar pension I'd paid into for 12 months almost 30 years ago. I cashed it in at age 50 - the lump sum was handy but the regular pension payment was tiny/.