Can you cash in a stakeholder pension early?
Most stakeholder pension schemes won’t allow you to withdraw your funds until you turn 55. However, you should be able to move your funds to another stakeholder pension provider.
Some pension plans will let you cash in your pension funds early, if you become seriously ill.
Do stakeholder pensions offer a drawdown option?
Yes. Most stakeholder pensions will offer a drawdown option. Drawdown becomes available to you once you turn 55, and involves leaving your money invested in your pension pot to withdraw as and when you need it.
Is a stakeholder pension a defined contribution scheme?
Yes, a stakeholder pension is classed as a type of defined contribution scheme. They’re a flexible way to build your retirement savings and top up your state pension once you retire.
Can I transfer my stakeholder pension into a SIPP?
Most schemes will allow you to transfer your funds into a self-invested personal pension (SIPP). You can generally move your stakeholder pension at any time of year before you start drawing out your retirement benefits.