Product summary
A few good reasons why the Legal & General Stakeholder Pension, available through Nationwide, might be right for you:
- tax relief on payments to your plan at your highest rate of income tax, with any growth on your pension fund free from certain UK taxes
- flexible payments - lump sum or regular and you can stop, start, increase or decrease your payments at any time
- indexation option - allows the payments to increase automatically each year to maintain the "real value" of your investment
- three investment funds to choose from and no charges for switches between them
- it's low cost - just a 1% annual management charge on the fund value
- tax free cash lump sum of up to 25% of your pension fund can currently be taken when you take your pension benefits
Please see also "What are the risks and rewards associated with investing in a pension"
The range of Stakeholder pension funds provided by Legal & General
There are three funds available in which you can choose to invest the payments to your plan.
L&G (N) Tracker Pension Fund
Invests in UK companies by tracking the performance of the FTSE All-Share Index. The fund is invested in the L&G (N) Tracker Trust where investment management is provided by State Street Global Advisors.
L&G (N) Corporate Bond Pension Fund
Invests predominantly in interest bearing securities issued by governments, other public issuers and companies worldwide. The fund is invested solely in the L&G (N) High Income Trust where investment management is provided by BlackRock.
L&G (N) Cash Pension Fund
Invests in cash deposits and money market instruments. The fund is invested in the Gartmore Cash Fund which is managed by Gartmore Fund Managers Limited.
Each of these funds is invested as a unit trust. The value of your plan may therefore go down as well as up and is not guaranteed.
Expert advice - is available from our Senior Financial Consultants at no additional cost.
If you need advice, contact your local branch for an appointment with your Senior Financial Consultant