Stakeholder Pensions, Immediate Vesting

If you are over the age of 50 it may be possible to pay into stakeholder pensions and to draw the benefits immediately.

You can do this even if you are not currently employed or are already drawing a private pension or the state pension.

Immediate Vesting Personal Pensions – Unique Benefits

If you are aged between 50 & 75, you are entitled to a unique tax-break that could provide all of the following benefits.

25%  (Gross) IMMEDIATE GROWTH ON EVERY CONTRIBUTION

With A TAX-FREE CASH SUM, STRAIGHT AWAY.

And TYPICAL INCOME OF 9 % (Gross) PLUS, GUARANTEED FOR LIFE

With an Immediate Vesting Pension, the money you pay is converted into an income immediately, hence the name. The returns can be exceptional, as the points below will show.

Key Points

·         You can invest £2,880. The government will add £720 basic rate tax relief, increasing your fund to £3,600 immediately! (if you are a higher rate taxpayer, you can claim additional tax relief through your tax code)

·         You may be able to invest more into your Immediate Vesting Pension if you are working

·         You can draw a tax free lump sum of £900 immediately

·         A relatively high fixed return is then paid. You could receive between 9% and 13% per annum if you are aged over 65 ( remember though, like a pension, there’s no return of capital)

·         You start to receive your annual income payments immediately

·         You are guaranteed an income for life

·         This is restricted to a relatively small lump-sum investment, but it is possible to take out a new Immediate Vesting Pension each tax year, thus building your income over time

·         You can invest in an Immediate Vesting Pension if you are between the ages of 50 to 75

·         A couple can each invest in an Immediate Vesting Pension in the same tax year

Where else could you grow your investment by 25% in a single day, whilst providing a quite exceptional income yield on your contribution. Furthermore, all of this is extremely transparent, you can see what you put in and exactly what you are getting out. There is no stock market risk or complicated structure to worry about.

You do not even have to have taxable earnings to qualify for the tax relief.  

Pensionadvice is provided by Priscum Ltd which is authorised & regulated by the Financial Services Authority. No 507387