feature
Other Candid sites

Candid Financial Advice
Financial advice for a fraction of the usual cost.

Compare Fund Platforms
The UK's only fund platform comparison site for private investors.

Calculator over 80 Calculators!

Covering almost all your money needs - use them.

Pension Cost Comparison

Calculator High pension charges could leave you lost at sea when you retire. Use this calculator to compare the impact of charges across different pensions.

Random Jargon

Distressed Securities Specialist

An investment (hedge fund) strategy where managers seek out companies that are in big trouble, often on the verge of bankruptcy, in the hope they can improve matters and make a profit.

Ask Justin

Ask Justin

| Printable version | A A A |


Use a second stakeholder pension?

Retirement | Stakeholder Pension Helpful? 3

Asked by SarahSS, submitted 19 May 2012.

Open Quote I already have an NHS stakeholder pension with Standard Life. As a result of a pension sharing order I'm expecting to receive a significant sum from my ex. His pension also happens to be with Standard Life. I could add the funds to my existing stakeholder pension or I could start a new stakeholder (I'm not interested in a SIPP). Should I plan to use a different provider, in the interests of not having all my eggs in one basket should anything happen to Standard Life? What protection is there for stakeholder pensions if the provider goes bust? Thanks - SarahEnd Quote

Answered by Justin on 17 September 2012

Stakeholder pensions are covered under the Financial Services Compensation Scheme (FSCS). If the insurer goes bust you'll normally be covered for 90% of the value of your pension fund.

Standard Life is a pretty safe company and I wouldn't expect them t go bust. A more compelling reason for splitting your stakeholder pension with another insurer is investment choice.

Standard Life offers a reasonable range of funds (around 30), of which some are trackers (i.e. they try to mirror an index rather than use an active manager who might do better or worse). There's probably little benefit in using an alternative stakeholder pension provider if you're only investing in tracker funds, but you may want to augment this with another provider offering access to a reasonable range of actively managed funds. Legal & General springs to mind, it offers around 40 funds including some actively managed by third party fund manages including Aberdeen and Newton. No guarantee of success, but a sensible way to diversify your stakeholder pension investments.

If you're not concerned about investment diversification then I don't see any significant downside to remaining with Standard Life. Just ensure you shop around for the best annuity quote you can find when retiring.


Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

If you found this answer helpful, please add your vote by clicking here.


Readers' Comments (0) - To post a comment please register or login .