How do I pay into a stakeholder pension or personal pension?

With stakeholder pensions, if you are self- employed, you will pay your pension contribution directly to the stakeholder pension scheme. The pensions provider will tell you how to pay in.

With most personal pensions, you agree to make regular payments, usually once a month, over a fixed period of time (in some cases, 30 years or more).

These schemes are called ‘regular premium pension plans’ and they can be a suitable option if you can pay into them regularly over the years.

What if I want to change the amount I pay in?

With all stakeholder pensions, you can change the amount of your payments and how often you pay them without any extra charge. Some personal pensions may also let you change what you pay without charging you any extra. You should be careful, however, as personal pension providers may want you to pay extra charges if you change your payment.

‘Single premium’ plan stakeholder pensions allow you to pay a single lump-sum, or a series of lump sums, for no extra charge. Some personal pensions may offer the same arrangement, but you will need to check with the pension provider.

If you can only afford to pay a small amount into a pension, all stakeholder pensions will accept contributions of as little as £20, which you can pay each week, each month or at less regular intervals. You can also continue to pay into a stakeholder pension if you stop working. For more information, see Stakeholder pensions – Your guide (PM8). See the directory for details about how you can get a copy of this guide.

Your stakeholder pension or personal pension will be based on how much money you have contributed and how well your fund’s investments have performed. So, f possible, you should always pay into your pension scheme regularly.