NFU Mutual stakeholder pension
NFU Mutual's Stakeholder Pension Plan is a low cost, flexible way of investing for your retirement that offers all the tax privileges available to pension plans of this kind. It offers a choice of eight different investment funds to suit differing investment objectives and attitudes towards risk, and you can spread your contributions in one or more of these funds to help achieve a balanced investment.
Not only can you invest for your own retirement, you can also open a stakeholder for a child. A plan can be set up in a youngster's name, and parents or adults can pay the contributions into it. Just think how far ahead you could be if someone had started a pension for you whilst you were still a child.
- Stakeholder Pension Plan frequently asked questions
How much can I contribute?
There is currently no minimum contribution for the NFU Mutual Stakeholder Pension Plan, monthly or single premium. But the UK Government does specify the maximum contribution you can pay, or that can be paid on your behalf, of £235,000 or your earnings, Iower, into one or more pension schemes in any tax year, including any premiums payable for life assurance under a pension plan.
The vast majority of individuals can contribute up to £3600 gross (including tax relief) each tax year into their pension arrangements without any restrictions. A full explanation of this can be found in the Stakeholder Pension Plan Key Features Document.
If you have net relevant earnings (NRE - which are all earnings subject to UK income tax less certain expenses, the maximum gross contribution you can make into a plan is the lower of £235,000 and your net relevant earnings for the year.
You should remember that the value of a stakeholder investment can go down as well as up, so you may not get back what you invested. In addition, inflation could erode the value of your pension fund in the future, so it's important to review your pension provision on a regular basis to ensure your contributions will be enough to help you live the retirement you want.
Low charges
For all new Stakeholder Pensions opened after 6th April 2005, there will be an annual management charge of only 1.5% of the value of the funds you accumulate for the first 10 years of the plan. Thereafter the charge is reduced to only 1% per annum.
Plans taken out before this date are subject to an annual management charge of only 1% throughout the lifetime of the plan.
And that's not all - NFU Mutual recognise the importance of retirement planning and so, as the value of your fund increases, NFU Mutual will rebate part of the fund management charge each month based on your fund size. Details about this rebate can be found in the Stakeholder Pension Plan Key Features Document.
Award-winning fund management
There is a choice of eight investment funds within the Stakeholder Pension Plan. You can choose to invest in one or more of these to tailor your plan to suit your own personal investment attitude and objectives. The different funds available are listed in the 'frequently asked questions' section.
All funds are managed by our award-winning investment management team, who aim to achieve the best possible returns for investors over the long-term rather than focusing on short-term gains. The team has regularly won awards for its management of our life and pension funds. You should remember that past performance is not a guide to the future.
The above information is based on NFU Mutual's understanding of current tax legislation, which is subject to change.
Stakeholder Pension Plan frequently asked questions
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