Can, and should, I take out a stakeholder pension?

A stakeholder pension is a special type of personal pension designed to be reasonably low-cost. You can have a stakeholder pension in addition to being in another workplace pension scheme, if you want to save more.

Most employers should already have some form of workplace pension in place, where they contribute and employees can be required to contribute too. By 2018, even the very smallest employers have to auto-enrol their eligible staff in an employer pension scheme and allow others to join if they apply.

Find out from your employer about their workplace pension scheme and use this pension contribution calculator to see how much you could put away each month.

You can get more details about stakeholder pensions on the Money Advice Service website. The calculator assumes your employer will make the legal minimum contributions required for auto-enrolment, based on only part of your salary. However, your employer may choose to make pension contributions on your full salary, and may pay more than the legal minimum.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.