Stakeholder pensions for children
Indulge more than their imaginations
Invest in their future with a Stakeholder Pension Plan for children
While your children are growing up, it’s easy to indulge their dreams of becoming a mermaid or starting their very own ice cream farm. But when it comes to their real ambitions – from travelling the world, to starting a family of their own - one thing’s for certain: they’ll be living in a world that’s more expensive than ever.Our Stakeholder pension is a simple, low cost, tax efficient way to help provide for your child’s future.
The charges
The Government's maximum permitted annual management charge for Stakeholder pensions is currently 1.5% a year of the value of your fund for the first 10 years of your pension plan and 1.0% a year after that. Compared with this, Legal & General's charges for online applications provide great value for money.
Legal & General's basic annual management charge is tiered according to the value of the fund. As your investment grows the rate of charge decreases.
| Retirement Fund Value Bands | Basic Rate of Online Annual Management Charge Applicable to Band |
|---|---|
| Under £25,000 | 1.0% |
| £25,000 to £50,000 | 0.9% |
| £50,000 and over | 0.8% |
For example, if your investment in Legal & General funds is worth £40,000 throughout the year, the rate of annual management charge would be (£25,000 x 1.0%) + (£15,000 x 0.9%), which is £250 + £135 = £385.
If you decide to invest in any externally managed investment funds, an additional annual management charge (currently 0.15%) will apply to your investment in those funds only.
You can of course apply on a paper application form if you wish. However, an extra charge will apply if your initial investment is less than £15,000. Full details can be found in your paper application pack, which you can request using the contact us section on the right hand menu.
If you are transferring the value of an existing pension plan into a new Legal & General Stakeholder Pension Plan, an extra charge may apply, as professional advice is provided.
