Key facts

An AEGON Stakeholder Pension plan aims to build up a sum of money, in a tax-efficient way, to provide you with an income during your retirement. It’s available to anyone under 75.

Tax-efficient

• Your own pension contributions are paid net of basic rate income tax. We collect the tax relief from HM Revenue & Customs (HMRC) and add it to your plan. This means that for every £100 paid into your plan, you only pay £80. If you’re in a higher tax band, you can claim the extra relief from HMRC in your yearly tax return.
• You may be able to take up to 25% of your fund as a tax-free lump sum when you retire, although this will reduce your regular income payments.

This information is based on our understanding of current taxation law and HM Revenue & Customs practice, which may change. The value of tax relief depends on your financial circumstances.

Contribution flexibility

• There are many different ways of making contributions to your Stakeholder Pension plan, from regular monthly payments to a single lump sum.
• Regardless of what you earn, you can make contributions to your plan of up to the greater of:
  • 100% of your relevant UK earnings, and
  • £3,600 a year gross
• You can change or even stop your contributions, or transfer your money into another pension fund, at any time.
  
  If you stop paying contributions or take a contribution break, your pension may be lower than shown in your personal illustration.

Taking your retirement benefits

• You can set your retirement date at any age between 55 and 75. However, you don’t have to stop working at that time – it’s simply the date at which you stop paying into your fund and can use the money to provide an income.
• You use the money to provide an income by choosing to:
  • buy an annuity, which gives you a regular income for the rest of your life, or
  • move into a drawdown pension arrangement, where your fund stays invested and you can take an income from it
• The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. If you’re unsure about the risks associated with funds, you should speak to your financial adviser.

Capped charges

Government regulations mean that charges to a stakeholder plan should not exceed 1.5% of the total fund value for the first 10 years, and 1% after that.

How to apply

Find out how to apply for our products and where you can find out more about the choices available to you.

How to apply

Plan today, enjoy tomorrow

Do you know how much you’ll need to live on when you retire? Our online tools can help you add up your current and future costs.