Stakeholder pensions. Part of the Department for Work and Pensions. Your guide

Transcription

1 Stakeholder pensions Part of the Department for Work and Pensions Your guide April 2004

2 Why do I need a pension?

3 Stakeholder pensions Your guide Everyone needs to plan ahead for retirement. People are living longer and healthier lives, so it is even more important to think about how and when to save for retirement and how long to work. The basic State Pension will give you a start, but to have the lifestyle you want in retirement you need to think about a second pension, and the sooner you can start the better. This guide tells you about stakeholder pensions. It outlines the things you need to think about before taking out a stakeholder pension and answers some of your questions. It will also help you decide whether you want to take out a stakeholder pension. Other guides in this series will give you more information about particular areas of pensions. See page 44 for details about how you can get copies of these guides. These guides can give you helpful information, but only you can make decisions about your pension. 1

4 Why do I need a second pension? The Government believes that the best way for you to have a secure retirement is to use the basic State Pension as a start, but if you want to increase your pension for when you retire, you need to think about the best additional or second pension option for you. In general, the earlier you start paying into a pension and the more you pay in, the higher your pension will be. If you are employed, you may already be paying into an occupational pension scheme run by your employer. But you may be self-employed or not currently working. Or, you may not have the opportunity to pay into a second pension with your employer. If you have not yet made any arrangements for a second pension, a stakeholder pension may be the best option for you. But that will depend on your circumstances. If you have made some arrangements for a second pension, you should think about whether the basic State Pension and any additional State Pension, together with any arrangements you have already made, will be enough to give you the lifestyle you want when you retire. 2

5 You may want to get further information about pensions from the organisations listed on pages 37 and 38, or from your employer or union (if you belong to one). What are stakeholder pensions? Stakeholder pensions are low-charge pensions meant for people who do not have access to an occupational pension or a good-value personal pension to save for their retirement. You use your own money to build up your pension fund. Your stakeholder pension scheme manager or trustees will put your contributions into investments such as stocks and shares for you. When you decide to take your pension or retire, you will use your fund to buy a pension from a pension provider. The pensions telephone helpline, run by the Pensions Advisory Service (OPAS), can give you further information about stakeholder pensions. See page 37 for details. 3

6 Where can I get a stakeholder pension? You can get stakeholder pensions from financial services companies such as insurance companies, banks, investment companies and building societies. Other organisations such as trade unions may also offer stakeholder pensions to their members. You can approach a stakeholder pension provider direct about starting to contribute to a stakeholder pension. If you are employed, your employer must provide you with access to a stakeholder pension, unless they are exempt. Employers are exempt if they: have fewer than five employees; or offer an occupational pension scheme for all their employees to join within one year of them starting work. Employers may also be exempt if they offer to contribute at least 3% of earnings into another form of non-state pension for their employees, as long as the pension does not have penalties for employees who leave the scheme. 4

7 Who provides stakeholder pensions? Employers do not have to provide you with access to a stakeholder pension if you are earning below a certain level (the lower earnings limit ). For more information about the lower earnings limit, please contact your tax office (details are in your local phone book). Providing access means that your employer will have to choose a scheme that you can join if you want to. Employers offering access to a stakeholder pension must give you information about the scheme they have chosen, and give you the option to have your own pension contribution deducted direct from your pay. 5

8 How do stakeholder pensions differ from other pensions? By law, stakeholder pensions must meet a number of minimum standards to make sure they offer value for money, flexibility and security. The stakeholder pension standards include the following. Stakeholder pension providers can only charge you a maximum of 1% of the value of your pension fund each year to manage your fund. The charges are taken from your fund. As well as the 1%, the law allows stakeholder pension providers to recover costs and charges they have to pay for certain other things. For example, when they have to pay any stamp duty or other charges for buying and selling investments for your fund, or for particular circumstances such as the costs of sharing a pension when a couple divorce. These expenses are found in other pension schemes, not just stakeholder pensions. Any extra services and charges not provided for by law must be optional. Extra services include advice on choosing a pension or life assurance cover. You must 6

9 have agreed to these extra charges as a separate arrangement, and the charges must be clearly defined for the services you are being offered. If you choose to transfer into or out of a stakeholder pension, or you stop paying your contributions for a time, the stakeholder pension provider will not charge you extra. All stakeholder pension schemes will accept contributions of as little as 20, which you can pay each week, each month or at less regular intervals. All stakeholder pension schemes must be contracted out, but you will usually be able to choose whether to be a contracted-in or a contracted-out member of the scheme. For more information about what contracted out means, please see page 21. The scheme must be run by trustees or by an authorised stakeholder manager, whose responsibility will be to make sure that the scheme meets the various legal requirements. 7

10 8 These trustees or stakeholder managers decide how your funds in a stakeholder pension are invested. Some schemes may also offer you a choice of investments, but you do not have to make these investment choices if you don t want to you can leave them to the trustees or managers.

11 Is a stakeholder pension a good choice for me?

12 Is a stakeholder pension agood choice for me? Whether a stakeholder pension is the best choice for you will depend on your particular circumstances. If you are a moderate earner and you want to build a second pension, you should think about a stakeholder pension along with other pension options. Stakeholder pensions may also interest you if you are a lower earner or you do not have an income of your own but can afford to save for a pension. If you are self-employed, a stakeholder pension could also be the right option for you. You can also make contributions to a stakeholder pension for children. If you have already joined another kind of pension scheme, you should ask the pension provider whether it will be easy and cheap to transfer to a stakeholder pension (or other pension) if this is better for you. But see pages 12 and 13 if you are in an occupational pension scheme. In general, the earlier you start contributing, and the more you pay into a stakeholder pension, the higher your final pension will be. But you will not be able to draw on any money put into a pension scheme until you are at least 50, or until you retire. If you 10

13 think you might need some of your savings before then, it may be better for you to think about other ways of saving, such as an Individual Savings Account (ISA). For more information about ISAs, please see the Inland Revenue leaflet ISAs, PEPs and TESSAs (IR 2008). See page 40 for details about how you can get a copy of this guide. What if I am an employee? If you are an employee, you can choose to build up an additional State Pension on top of the basic State Pension. Up to April 2002, the additional State Pension was called the State Earnings-Related Pension Scheme (SERPS). SERPS was based on your record of National Insurance contributions and your level of earnings as an employee. On 6 April 2002, the Government reformed SERPS, creating the State Second Pension to provide a more generous additional State Pension for low and moderate earners, and for certain carers and people with long-term illnesses or disabilities. For State Second Pension purposes, earnings up to 11,600 are low earnings and earnings between 11,600 and 26,600 are moderate earnings (for 2004/05). (Any SERPS entitlement that has already been built up will be protected, both 11

14 for those who have already retired and for those who have not yet reached State Pension age.) Generally, if you are on low earnings, it may be better for you to stay in the State Second Pension instead of starting a stakeholder pension. For more information about the State Second Pension, see State pensions Your guide (PM2) and State pensions for carers and parents (PM9). See page 44 for details about how to get a copy of these guides. However, if you are able to save more towards your pension, you may want to think about starting a stakeholder pension. If your employer is providing access to a stakeholder pension, you can ask them to take your pension contributions direct from your pay. You will get tax relief on the contributions you make. See pages 23 and 24 for details. You should ask your employer if they have an occupational scheme. If your employer does run a scheme, you will normally be better off joining it. Some employers run schemes which you don t have to pay into at all. For other schemes, you will need to make a contribution. 12

15 Who can take out a stakeholder pension? Occupational schemes often provide extra benefits, such as: a pension or lump-sum payment to your husband or wife if you die early (and sometimes to your partner if you are not married); and a pension if you become ill or disabled and have to retire early. You should check with your employer to find out what their occupational scheme covers. If you are a member of an occupational pension scheme, tax rules mean that you might be able to add to your pension provision by taking out a stakeholder pension as well. You should check with your occupational pension scheme to find out if you can join a stakeholder pension scheme as well. See page 40 for details about how you can get a copy of the Inland Revenue leaflet Personal Pension Schemes (including Stakeholder Pension Schemes) A guide for members of tax-approved schemes (IR3). 13

16 If you are thinking about transferring from your occupational pension scheme into a stakeholder pension, see page 41 for details about how you can get a copy of the Financial Services Authority s consumer guide FSA guide to the risks of occupational pension transfers. What if I am self-employed? If you are self-employed, you can build up entitlement to the basic State Pension but you cannot get any additional State Pension (State Second Pension). So, if you are self-employed, you may want to think about a stakeholder pension to give you an income above the basic State Pension. If you take out a stakeholder pension, you can still benefit from tax relief on the contributions you pay in. If you are self-employed, please see Pensions for the self-employed Your guide (PM5). See page 44 for details about how you can get a copy of this guide. 14

17 What if I am not working? Certain people who are not working (for example, people caring for children) have their basic State Pension protected. In the past, they were not entitled to any additional State Pension for the years they were out of work. From April 2002, they are protected under the State Second Pension. This will include people who: look after young children or a disabled person; or have long-term illnesses or disabilities themselves; and so have not been able to work on aregular basis. If these situations apply to you, it may affect your decision about whether to take out a stakeholder pension or stay in the State Second Pension. If you are not working but you can afford to save something towards your retirement, you may want to think about a stakeholder pension. You could benefit from tax relief on the contributions you pay in. Example of how moderate earners can benefit from a stakeholder pension Parveen is a self-employed fitness trainer in her late twenties, earning around 16,000 15

18 ayear. She has recently bought a flat with a friend, and now that the initial expenses are out of the way she thinks that she can afford to start a pension. Parveen has considered the information on stakeholder pensions, including the decision trees (see page 30 for details), and this has helped her to decide that a stakeholder pension would be suitable for her. She likes the idea that she can put in small, regular payments and top these up when she can afford to. Caroline works full time and earns 18,000 ayear. She wants to start a family in the next few years and when she has children she expects to take some time out of paid employment. She has joined her employer s stakeholder pension scheme as she likes the flexibility it gives her. If she can afford to, she will be able to continue paying into her pension while she has time off. If she wants to stop making payments for a while, she won t have to pay anything extra to do so. Although she will still pay the yearly charges (maximum of 1%) for the management of her fund. 16 What if I get divorced? If you get divorced or have your marriage annulled, the courts have to take into account the value of all your assets, including

19 the value of your pension entitlement. This is so that the courts can decide how your assets should be divided. Since 1 December 2000, couples whose marriages end in divorce or annulment can share the value of their pension. The idea is to provide greater flexibility and choice for the divorcing couple and the courts. Pension sharing is not compulsory; it is an option available to divorcing couples who are entitled to second pensions, such as: an occupational pension; a stakeholder pension; a personal pension; and the additional State Pension. Pension sharing does not apply to: the basic State Pension, as divorced people can already replace their own contribution record with their husband s or wife s record for the period the marriage lasted; couples who started divorce or annulment proceedings before 1 December 2000; or couples who separate but do not divorce. Pension sharing only applies to divorce proceedings which started on or after 1 December

20 If you want to know more about how divorce affects your pension, you may want to get advice from a lawyer or an independent financial adviser (or both). If you live in England or Wales, you might also find the guide I want to apply for a Financial Order (D190) helpful. See page 41 for details about how you can get a copy of this guide. In Northern Ireland, a court can make a pension sharing order in connection with proceedings for a divorce or annulment. In Scotland, afinancial order can be made as part of divorce proceedings. Another guide you may find useful is Pensions for women Your guide (PM6). See page 44 for details about how you can get a copy of this guide. What if I change my mind? After you join a stakeholder pension scheme you might change your mind. Some stakeholder pension schemes have a 14-day cooling-off period, but some do not. The cooling-off period gives you a chance to change your mind if you want to. In any case, one of the key features of stakeholder pensions is that they are flexible. If you want to increase, reduce or stop your contributions, you can do so without being charged anything extra. 18

21 How do stakeholder pensions work?

22 How do I pay into a stakeholder pension? If your employer is providing access to a stakeholder pension, you can ask them to deduct your pension contributions direct from your pay. You will need to tell your employer how much you want to pay in and agree with them how often. You can also choose to join a different stakeholder pension scheme from the one your employer is providing access to. If you do this, it will be your responsibility to pay your contribution direct to the stakeholder pension scheme. The pension provider would tell you how to pay in. Stakeholder pensions are flexible. If you want to increase, reduce or stop your contributions, you can. This flexibility means you can change how much you pay, or how often, without having to pay an extra charge. However, if you are paying your contributions through your employer, you may only be able to change the amount you pay every six months. Stakeholder pension schemes are not allowed to make extra charges if you stop paying or if you want to transfer to another scheme. 20

23 You can also carry on paying into a stakeholder pension if you stop working but you can still afford to make pension contributions. If your circumstances improve, you can increase the amount of money you pay into your stakeholder pension, in line with the overall tax limits. These tax limits are explained on pages 24 and 25. Your stakeholder pension will be based on how much money you have contributed and how well the fund s investments have performed. So, if possible, it will be better if you can make regular payments into your stakeholder pension. National Insurance rebate If you are an employee, you can use a stakeholder pension to leave (contract out of) the additional State Pension. If your stakeholder pension is contracted out of the additional State Pension, both you and your employer will still pay National Insurance contributions at the full rate, and the Inland Revenue will pay a National Insurance contribution rebate direct to your stakeholder pension scheme. The amount of the rebate will depend on your age (the older you are, the higher the rebate will be) and the amount of your earnings. The Inland 21

24 Revenue will also pay tax relief on your share of the rebate. For more information on these Inland Revenue payments, see Employee s Guide to Minimum Contributions (CA17). See page 42 for details about how to get a copy of CA17. A person contributing to a contracted-out stakeholder pension who earns less than 11,600 (in the tax year 2004/05) will also get some State Second Pension. This is because of the extra help the State Second Pension gives to lower-paid people. If you are thinking of contracting out, you need to think about whether the National Insurance rebate and tax relief paid into your stakeholder pension will give you a better option than the State Second Pension. If you are not sure what to do for the best, you may want to get advice from a financial adviser. But remember, if you see an adviser you may have to pay for their advice. If you do decide to contract out, you will still be entitled to any SERPS or State Second Pension that you have built up before you leave. 22

25 Will I get tax relief? If you are self-employed, you are not covered by SERPS or the State Second Pension. So, you cannot contract out. If you are self-employed, you will not receive a National Insurance rebate. If you want to know more about contracting out of the State Second Pension, please see Contracted-out pensions Your guide (PM7). See page 44 for details about how you can get a copy of this guide. Tax relief You will usually get tax relief on your contributions to a private pension. This tax relief is available to everyone who pays into a stakeholder pension, even those who do not pay tax. With a basic rate of income tax of 22%, every 100 that goes into your pension costs you 78 (based on the tax year 2004/05). 23

26 If you pay income tax at the higher rate of 40%, every 100 that goes into your pension costs you 60 (based on the tax year 2004/05). If you want to know more about stakeholder pensions and tax, please see the Inland Revenue leaflet Personal Pension Schemes (including Stakeholder Pension Schemes) A guide for members of tax-approved schemes (IR3). See page 40 for details about how you can get a copy of this leaflet. How much can I pay in? You can invest up to 3,600 in your pension each year, no matter how much you earn. This 3,600 limit includes: the contributions you make towards your pension; any contributions made by your employer; and the tax relief you receive from the Inland Revenue. The 3,600 limit does not include the National Insurance rebate that the Inland Revenue will pay if you have contracted out of SERPS or the State Second Pension. 24

27 However, the tax rules mean that you can invest more than 3,600 each year if you also meet other requirements relating to your age and your earnings. If you: are employed; are self-employed; or have recently stopped working; and you want to invest more than 3,600 in any tax year in your stakeholder pension, please see Personal Pension Schemes (including Stakeholder Pension Schemes) A guide for members of tax-approved schemes (IR3). See page 40 for details about how you can get a copy of this leaflet. 25

28 What do I need to think about? 26

29 Information about your pension You need to decide whether a stakeholder pension is best for you, and this will depend on your current circumstances and your plans for the future. If you join a stakeholder pension scheme, the pension provider must give you regular information. This includes an annual statement to let you know how much you have paid in, and how your fund is progressing. All schemes that provide money purchase benefits (including stakeholder pensions) must provide members with a yearly illustration of what their future pension might be when they reach the retirement age provided for in the scheme. You can use these statements to check that enough money is going into your pension to give you the income you think you will need when you retire. Reviewing your pension arrangements You should continue to review your pension arrangements regularly to make sure they will give you enough pension to live on when you retire. The annual statements the scheme provides will help you to decide the right amount to put in. 27

30 28 You should remember to take into account any changes in your personal circumstances and in the law. What happens when I start to receive my pension or I retire? Your pension will be paid through an annuity. An annuity is an arrangement by which a life insurance company pays you a regular income, usually for life, in return for a lumpsum premium. You buy an annuity with the money invested in your stakeholder pension. You do not have to buy an annuity from the scheme provider whose stakeholder pension you had, so shop around to compare what other companies have to offer. You can buy an annuity between your 50th and 75th birthdays, using the money you have contributed to your pension fund. This annuity is usually paid every month (but must be paid at least once every year) until you die. However, you cannot buy an annuity before the age of 60 with the part of your pension fund that has been built up from rebates of National Insurance contributions (if you contracted out of SERPS or the State Second Pension). If you make payments into your stakeholder pension above those paid by the Inland Revenue, you will be able to get a tax-free

31 lump sum when you retire. If you are eligible to take out a lump sum, the most that you can get under this arrangement is 25% of the money you have paid in and the money you have made from its investment. You could also think about whether your pension fund is large enough for you to withdraw money from it instead of buying an annuity straight away (this is called income withdrawal or drawdown ). However, unless you have several pension funds, most experts reckon that you need a fund of over 100,000 to seriously consider it. There are limits to the amount you can withdraw from your pension fund, and you must still buy an annuity by your 75th birthday. For more information, please see the Financial Services Authority guide to annuities and income withdrawal. See page 41 for details about how you can get a copy of this guide. If you are not sure what to do for the best, you may want to get advice from a financial adviser. But remember, if you see an adviser you may have to pay for their advice. Regulating stakeholder schemes The Financial Services Authority (FSA) and the Occupational Pensions Regulatory Authority (Opra) are both involved in regulating 29

32 30 stakeholder pension schemes. The FSA is responsible for making sure that the information you get is fair, clear and not misleading. Opra is responsible for making sure that the stakeholder pension scheme you choose meets the stakeholder standards and is well run. See pages 39 to 40 for details about how you can contact the FSA and Opra. How you can get more information You can get more information about stakeholder pensions from a variety of sources, including the following. FSA factsheet The FSA has a factsheet, Stakeholder pensions and decision trees, which gives you information about stakeholder pensions and also has decision trees (flow charts) to help you decide if a stakeholder pension could be a good way to save for your retirement. The trees take you through a series of questions about your circumstances, whether you are employed, self-employed or not working. See page 40 for details. Pensions telephone helpline This telephone helpline service is run by OPAS the Pensions Advisory Service. It can give you independent and impartial information about occupational, stakeholder and personal pensions. See page 37 for details.

33 Where can I get more information? Your employer If your employer offers you access to a stakeholder pension, they should give you information about the scheme they have chosen. Stakeholder pension scheme providers You can get information direct from a stakeholder pension provider. Opra keeps a list of the registered stakeholder providers. See page 39 for details about how you can contact Opra. State Pension Forecast If you want to know how much State Pension you may get when you retire, you can contact the Retirement Pension Forecasting Team (RPFT) on If you have speech or hearing difficulties, a textphone service is available on They will fill in an application form for you over the phone. Or, you can write to the RPFT, The Pension Service, Whitley Road, Tyneview Park, Newcastle upon Tyne NE98 1BA for a forecast form (BR19) and a return envelope. 31

34 You can also get form BR19 from your nearest social security office or Jobcentre (details are in your phone book). Or, you can download the form from the Resource Centre on The Pension Service website at Once we have received your filled-in application form, we will send you a forecast of how much your State Pension is likely to be. This forecast will help you to decide whether you are currently saving enough for your retirement needs, and what more you may need to do. The forecast is based on our knowledge of your current circumstances, and these could change. Your forecast will be most accurate if you are near to your retirement age. But it is best not to put off applying for your forecast until you are close to retirement. That way, you will have plenty of time to make additional second pension arrangements if you think the amount of your pension will not be enough. Our other pension guides This guide is one of a series that we produce. See pages 42 to 44 for more details. 32

35 If you are still not sure about your pension options and stakeholder pensions, you should think about getting financial advice. But remember, if you see an adviser you may have to pay for their advice. If you do decide to consult an adviser, make sure you understand, and are happy with, the advice they have given you before you go ahead with their recommendation. The rules for stakeholder pension schemes mean that you must be able to choose whether or not you want to take the advice that the pension provider offers, if it involves an extra charge. If you decide to pay for the pension provider s advice, they must charge you separately and not deduct the money from your pension contributions. Make sure you ask them how much they will charge you before you take their advice. Financial advisers must keep to the rules laid down by the FSA, and they must tell you which organisation regulates their work. 33

36 Complaints about how your stakeholder pension is run When you take out a stakeholder pension, the pension provider will tell you what to do if anything goes wrong and how to complain if you are not satisfied. There are a number of things you can do, or organisations you can talk to, if you have a complaint about your stakeholder pension. If you have a complaint about how your stakeholder pension scheme is being run and you cannot sort it out with your pension provider (for example, you are unhappy about your annual statements or the way your premiums are collected), you should contact the Pensions Advisory Service (OPAS). See page 37 for details. If your pension contributions are paid through your employer and you find out that your employer has not paid your contributions to the scheme provider, you should contact the Occupational Pensions Regulatory Authority (Opra). See page 39 for details. 34

37 Complaints about incorrect or incomplete advice The information available should help you decide if stakeholder pensions are right for you. Depending on your circumstances, you might decide to get professional advice from a financial adviser. But remember, if you see an adviser you may have to pay for their advice. If you think you have been given incorrect or incomplete advice, contact the company you received the advice from. If you are not satisfied with the company s response, you may be able to complain to the Financial Ombudsman Service. See page 38 for details. 35

38 Where can Iget more help?

39 Where to get help and information Directory Where we refer to phone numbers which begin with 0845, they will be charged at the local rate based on current charges from BT landlines. Charges for calls from mobile phones and other networks may be different. The Pensions Advisory Service (OPAS) can give you information about any aspect of occupational, stakeholder and personal pensions. You can contact OPAS if you are having problems with your pension that your scheme managers or trustees cannot sort out. You can contact them on , from 9am to 5pm, Monday to Friday. You can also Or, you can visit the OPAS stakeholder website at You can also write to the Pensions Advisory Service (OPAS), 11 Belgrave Road, London SW1V 1RB. 37

40 There are two other organisations for dealing with complaints about pensions. The Financial Ombudsman Service deals with complaints which mainly concern selling or marketing (or both) stakeholder and personal pensions. You can phone them on You can also Or, you can write to the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. You can also visit their website at The Pensions Ombudsman deals with complaints which mainly concern managing occupational, stakeholder and personal pensions (as opposed to complaints about selling or marketing pensions). You can phone them on or Or, you can write to the Pensions Ombudsman, 11 Belgrave Road, London SW1V 1RB. You can also visit their website at 38

41 Where to get help and information The Occupational Pensions Regulatory Authority (Opra) is responsible for registering stakeholder pension schemes and for regulating the way they are run. If your pension contributions are paid through your employer, and you find that your employer has not paid your contributions to the scheme provider, you can contact Opra on from 9am to 5pm, Monday to Friday, or Or, you can visit Opra s website at You can also write to the Occupational Pensions Regulatory Authority, Invicta House, Trafalgar Place, Brighton, East Sussex BN1 4DW. Opra also keeps a list of registered stakeholder pension providers. To find out more about this list you can either phone or Opra using the contact details above. Or, you can visit the stakeholder section of their website at 39

42 Other publications you may find useful The Financial Services Authority (FSA) has a factsheet Stakeholder pensions and decision trees.you can get this by phoning their Consumer Informationline on Or, you can consumerhelp@fsa.gov.uk or visit their website at ISAs, PEPs and TESSAs (IR 2008) You can get this leaflet by calling from 8.30am to 5pm, Monday to Thursday, and from 8.30am to 4.30pm on Fridays. You can also get this leaflet from your tax office (details are in your local phone book) or from the Inland Revenue website at gov.uk/leaflets/isa.htm Personal Pension Schemes (including Stakeholder Pension Schemes) A guide for members of tax-approved schemes (IR3) You can get this leaflet from your tax office or by calling the Inland Revenue Audit and Pension Schemes Services stationery orderline (answerphone) on at any time. Or, you can visit the Inland Revenue website at pensionschemes/guidance.htm 40

43 Where to get help and information You can also write to the Inland Revenue, Audit and Pension Schemes Services, Yorke House, PO Box 62, Castle Meadow Road, Nottingham NG2 1BG. I want to apply for a Financial Order (D190) If you live in England or Wales, you can get this leaflet from your County Court (details are in your local phone book) or from the Court Service website at Financial Services Authority guide to the risks of occupational pension transfers and Guide to annuities and income withdrawal.you can get a copy of these guides by calling at any time. Or, you can consumerhelp@fsa.gov.uk or visit the Financial Services Authority website at A guide to State Pensions (NP46) This guide gives you more information about state pensions, including details about how Home Responsibilities Protection works. It is a detailed technical guide which is mainly used by pensions advisers, but which the public often find useful as well. You can get this guide from your nearest social security 41

44 42 office or Jobcentre (details are in your phone book) or you can call us (see page 44 for contact details). Or, you can visit the resource centre on our website at Employee s Guide to Minimum Contributions (CA17) You can get this leaflet from the Inland Revenue National Insurance Contributions Office by calling from 8am to 5pm, Monday to Friday. You can also visit the Inland Revenue website at Or, you can write to the Inland Revenue National Insurance Contributions Office, Services to the Pensions Industry, Benton Park View, Newcastle upon Tyne NE98 1ZZ. Our guides in this series A guide to your pension options (PM1) This guide gives a general summary of the pension system and suggests points you should think about. State pensions Your guide (PM2) This guide explains whether you are likely to get a State Pension and how we work state pensions out. It includes more details about the State Second Pension, including examples of how it can help people in different circumstances.

45 Where to get help and information Occupational pensions Your guide (PM3) You will find this guide helpful if you are working for an employer who runs a pension scheme and you are a member of the scheme or are thinking of joining. Personal pensions Your guide (PM4) If you are thinking about a personal pension, this guide tells you the sort of questions you should be asking and how you can decide if a personal pension is best for you. Pensions for the self-employed Your guide (PM5) If you are self-employed, you have different options but you still have important decisions to make. This guide tells you how you can decide what will be best for you. Pensions for women Your guide (PM6) If you are a woman, the pattern of your working life may be different from a man s. For example, you may be more likely to have a career break to raise a family. This guide gives you an idea of the options available and what you should think about when you plan your pension. 43

46 44 Contracted-out pensions Your guide (PM7) This guide gives you information about contracting out of (leaving) the State Second Pension if you are an employee. Stakeholder pensions Your guide (PM8) This guide tells you what you need to think about before taking out a stakeholder pension. It will help you decide whether this kind of pension is best for you. State pensions for carers and parents Your guide (PM9) If you have given up work, or aren t earning very much because you are caring for someone, this guide may help you. It explains what to do to make sure you get as much State Pension as you can in the future. To order copies of any of the guides in this series, you can call us on The line is open 24 hours a day. If you have speech or hearing difficulties, a textphone service is available on Or, you can write to us for any of these guides at Pension Guide, Freepost, NAT 5951, Ashby de la Zouch LE55 7QP (you don t need a stamp). You can see these guides on our website at All guides are available in Welsh, on audiotape and in Braille.

47 For more information on any of the pension options below, please call or visit State Personal Occupational Women Self-employed Contracted-out Stakeholder Carers and parents

48 For more copies of this leaflet, or for a Welsh, audiotape or Braille version, you can phone You can also read this leaflet on the internet at ISBN: This leaflet is for guidance only. It is not a complete statement of the law Crown copyright Produced by The Pension Service Printed in the UK April 2004 PM8 General enquiries (textphone users call )