Stakeholder pensions are cheap, simple and flexible. Most prefer these schemes for their almost-guaranteed performances. The minimum contribution requirements are quite affordable, and one can alter monthly contributions or move to another scheme without incurring penalties. So, how do you go ahead and pick the right stakeholder pension? Read on to find out.
Several financial service firms such as banks, insurance companies, investment firms, etc. provide stakeholder pensions. As is the case with most financial products, it is worth looking around – the crucial thing to watch out for is AMC (annual management charge).
Stakeholder pensions, when compared to other financial offerings, are relatively new and they haven’t had much time for growth. What does this mean? It’s harder to judge effectiveness based on past performances. However, it certainly pays to look at what they’ve been up to in their past decade of existence.
Also, you must consider fund charges, the organization behind the fund, and the investment channels. If you aren’t very sure about the company, stick to established names as they are least likely to falter. The pension charges can be compared by typing in some fundamental information.
The next step is to check out additional discounts. Albeit extra discounts must never be the criteria for picking up an offering, keeping a close watch on special or seasonal offers could further boost the pension.
Once you get a hang of the kind of charges you would possibly incur, get in touch with firms who you’d like to do business with. Go through their product feature documents, or at least scan them thoroughly since those manuals house key data relating to the specific stakeholder pension.
At the end of the day, your experience with a pension depends on the funds chosen and their functioning. People picking up funds for the first time must indulge in thorough research or resort to third-party assistance.