Notes

What else should I think about before contributing to a stakeholder pension?

You may have other financial commitments that will affect what you can afford to contribute to a stakeholder pension. Or you may feel that other financial needs must come first. For example, ask yourself:

What are my other financial commitments?
For example, mortgage repayments, rent, life assurance, and credit cards. Make sure you do your sums before thinking about a stakeholder scheme and that you would still be able to afford your other commitments.

Would I be prepared, if necessary, to give up anything so that I can pay into a stakeholder pension?
Remember that saving through a pension scheme is a long term commitment. Any change in how you spend your money may need to last for a long time.

Should I be thinking of other things first?
For example, you may want to consider life assurance protection for you and your family, or building up some 'rainy-day' cash savings before thinking about a stakeholder pension.

If you are a member of your current employer's pension scheme, it may make sense to pay additional voluntary contributions to that scheme rather than contribute to a stakeholder scheme. And if you are currently contributing to a personal pension or stakeholder pension, it may make sense to increase your contributions to that scheme rather than start a separate stakeholder pension, especially if you have a stakeholder pension that has kept to the original 1% limit on charges. There's more about charges under the Further information section.