Is a Virgin Stakeholder Pension is a low-charge, low-cost, jargon-free pension?
Yes it's a stakeholder pension that i’s easy to set up, with flexible payments, consistent performance, and has as much helpful information as you need. It doesn't matter if you are employed, unemployed, self employed or wish to start a pension off for your child.
With a Virgin Stakeholder Pension it’s now easier than ever to save more money for your retirement.
FAQs about a Virgin Stakeholder Pension
Are there any risks I need to know about?
Stock market investments like pensions are different to saving in a risk-free deposit account. With the stock market the value of your investments plus the income they earn can go down as well as up, with no guarantees you'll get back the full amount you invest. And don't forget, you can't get at your pension until you retire, and the pension income you end up with will depend on annuity rates at the time. Also future governments may change the tax benefits of pensions. This is all stuff you need to know.
Can I claim the tax-relief on my annual tax return?
This used to be the case for self-employed people. But since April 2001 pension companies now claim basic rate tax relief for you and invest it in your pension, saving you the trouble.
If you pay higher rate tax you can still claim the additional relief on your annual tax return.
What happens if I'm ill or unable to work?
You can stop your payments whenever you need to, then start them again when you get back to work.
However, unlike other pensions you can still pay into a stakeholder pension when you're not working, if you want to. You'll find details about this in your Terms and Conditions.
If you're seriously ill the Inland Revenue may let you take your pension early.
What if I switch from self-employed to employed work?
The first thing is to find out if your new employer offers a company pension, and whether they contribute to it. If so, join that so you don't miss out.
You can also keep your Virgin Stakeholder Pension, and keep paying in if you wish. You only have to stop paying in if you join a company's occupational pension scheme and your earnings are over £30,000 a year or you're a controlling director of that company.
Either way let us know that you've changed jobs.
What happens when I actually retire?
You can normally take up to a quarter of your savings as a tax-free cash sum. The rest is used to buy you an income in retirement, called an annuity.
At Virgin Money we don't currently offer annuities. But when the time comes we'll give you some contact numbers that will help you find an annuity provider that's right for you.
What's the earliest I can take my pension?
From age 50 onwards. The Inland Revenue do let some occupations take their pension before then, for instance certain sports people. If you want you can even take your pension in stages, 'phasing in' retirement between 50 and 75.
What happens to my savings if I die before I retire?
They'll be paid to the people you name on your application - your beneficiaries.
What if I die soon after I retire - is it all wasted?
When you retire you can choose what sort of annuity you want.
Annuities come in all shapes and sizes. Some pay you an income until you die, and that's it. Others pay less income but keep paying money to your family if you die early in retirement. So you've got peace of mind your savings wouldn't go to waste.
What are stakeholder pensions for children?
They're the first pension you can start building up for a child, taking advantage of the amazing tax breaks.
As well as your own stakeholder pension, you can open one for each of your children, paying in up to £2,808 for each. Tax relief turns this into £3,600, which is invested in the stock market to grow over the years, building up a tidy nest egg.
You can also pay into stakeholder pensions for grandchildren, nieces, nephews and other family and friends. But you have to get one of the parents to start the pension for them first.
Can my non-working partner have one too?
Yes. Non-taxpayers can now start building up a pension and benefiting from the generous tax breaks too. If you've got a non-working partner or spouse they can pay in up to £2,808 a year, taking advantage of the terrific lift tax relief gives to their money. Or you can pay into the pension for them. They get the tax relief just the same.
Can I transfer other pensions to Virgin Money?
Yes, it's possible to transfer other pensions into a Virgin Stakeholder Pension. However, it's a big step and you'd need to make sure it was the right thing for you to do.
Does my self-employed business need a stakeholder pension?
It depends. If you employ 5 or more people the answer is almost certainly yes, or you risk a £50,000 fine. Our pension team can let you know if your business needs a pension. If you do, they can set it up and run it for you without charging your business a penny.