Education

Unlike annuities, drawdown leaves the retiree, not the insurer, holding most of those risks.

Most people build qualifying years through employment, self-employment or NI credits.

With capped annual management charges, low minimum contributions and a default lifestyle fund, stakeholder pensions can support consistent long-term saving alongside auto-enrolment workplace schemes or independently for those without one.

Trustees, who are typically members of the SSAS, must comply with the trust deed and scheme rules, the requirements of The Pensions Regulator and HMRC, and broader pensions and trust law.

A SSAS is a trust-based occupational pension scheme established by an employer, while a SIPP is a personal pension contract between an individual and a regulated provider.

Where a stakeholder scheme is used as a qualifying auto-enrolment default, a 0.75 per cent charge cap applies to the default arrangement under workplace pension rules. Providers may charge less but cannot exceed the relevant cap on the core management of the plan.

Standard personal pensions, including stakeholder pensions, restrict savers to a curated range of insured funds, while SIPPs unlock thousands of shares, ETFs, OEICs, investment trusts, bonds and commercial property.