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A less taxing way to save for retirement

  • A tax-efficient way to put a little extra aside for your future
  • Works alongside any Police pension you may have, enabling you to increase your future wealth and look forward to a higher level of income in later life
  • A small monthly amount now could make life even more relaxing in the future
  • If you wish to take out a plan for someone under 18, please call us on 01543 441 630.

How it works

  • Flexibility to save regularly and make top-up payments from £20
  • Choose to take up to 25% of your fund as a tax-free lump sum*
  • Automatic 20% tax relief, for every £100 you save, £125 is added into your pot
  • The value of your fund can go up and down and you may get back less than you invested
  • Ability to access your money when you're 55 (57 from 2028), whether you've retired or not
  • No lower age limit means you can start at any age and so you can even help your children or grandchildren plan for their retirement
  • Contribute the greater of £3,600 gross (£2,880 net of basic rate tax) or 100% of your gross UK earnings up to £40,000 per year (2019/2020 tax year) before you’re subject to tax penalties
  • The government sets a ‘Lifetime Allowance’ for pensions, measured against the value of your total pension benefits. The Allowance is currently £1.055m (2019/20 tax year) and it is expected to increase each year in line with the Consumer Price Index.
  • The value of tax benefits depends on your individual circumstance and tax rates or legislation which could change in the future
  • How much you get back depends on the performance of the Stakeholder Pension Fund
Interested in our Stakeholder Pension?
If you're interested in our Stakeholder Pension please call us on 01543 441 630 (Mon-Fri 8.30am-5.30pm) so that we can send you a paper application to complete.

Annuity Finding Service

As a Police Mutual Stakeholder or Free Standing AVC policyholder, you can take advantage of our arrangement with Retirement Solutions (UK) Ltd which allows you to access their 'whole of market' annuity service for free. They can search the market on your behalf to find the best available annuity rates. To take advantage of this service, contact Retirement Solutions (UK) Ltd on 0161 854 0076.

The (not so) small print

These products are provided by Police Mutual Assurance Society Limited trading as Police Mutual. More information is available on our legal page.

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Your Questions Answered Your Stakeholder Pension questions answered

  • A Stakeholder Pension is a tax-efficient, flexible pension plan that you can save regularly towards and make one off lump-sum payments into as and when you like.

  • Your payout will depend on the performance of our Stakeholder Pension Fund, which is where your money is invested.

    The Stakeholder Pension Fund invests in a wide range of assets. But like all funds that invest in stock market-based assets, the value of your investment will go up and down in line with the financial markets and we cannot predict what your fund will be worth in the future. It could be more or less than you’ve paid in.

  • You can save regularly from £20 a month and make top up payments from £20 by cheque whenever you like, subject to the Annual Allowance set by the government

  • You can contribute the greater of £3,600 (gross) or 100% of your gross UK earnings up to £40,000 per year before you’re subject to tax penalties, although there are different rules depending on individual circumstances. You can find full details on HMRC’s website.

  • The government sets a ‘Lifetime Allowance’ for pensions, measured against the value of your total pension benefits. The Allowance is currently £1,055m (2019/20 tax year) and it is expected to increase each year in line with the Consumer Price Index.

    But remember, the government may change the tax rules in the future.

  • Due to tax reasons, you can only make regular payments by Direct Debit and top up your investment by cheque.

  • Your Stakeholder Pension will continue as normal and you'll still be a Member of Police Mutual.

  • If you die before taking your pension benefits up to the age of 75, your plan benefits can be paid to your beneficiary as a lump sum tax-free. The beneficiary can choose to access the funds as a single lump sum or flexibly through drawdown.

    On death after 75, the plan benefits can either be accessed flexibly by your beneficiary, at any age, and taxed at the beneficiary’s highest marginal rate of income tax or can be taken as a lump sum which will be subject to tax at the recipient’s marginal rate of income tax

    Police Mutual currently don’t offer the option to access pension funds flexibly through income drawdown, therefore the plan would need to be transferred to another provider with this facility.

  • The Stakeholder Pension might be suitable for anyone who wants to save towards their retirement whether they have a pension or not. This could be for you if you're a Police Officer serving less than 35 years and just want to boost your pension pot, or if you're a member of Police Staff looking to build up your pension.

    Employed - you can contribute to a stakeholder pension even if you're part of an occupational pension scheme. 

    Self-employed - a stakeholder pension might be suitable for someone who is self-employed, such as an Officer's partner running their own business.

    Not employed - even if you're not in work, you can put up to £3,600 gross (£2,880 net) into a pension per year and still receive tax relief. So you get back tax you haven't even paid.

    Children - there's no lower age limit to stakeholder pensions, so even children can have a plan. You can help your children or grandchildren plan for their long-term future.

    But remember, the government may change the tax rules in the future.

  • There are several tax relief measures, so it’s tax-efficient, but there’s some tax to pay depending on how much you contribute and when you take the benefits.

    Here's a summary of the tax relief available:


    For every £80 you pay into your pension, £100 is invested. This is because the tax you've already paid on your income - at 20% - is given back to you and put into your stakeholder pension.

    Non-earners also receive this tax benefit and so will get more tax relief than they've actually paid. Higher rate taxpayers can claim further tax relief through their tax returns.

    At retirement

    When you retire, you can take up to 25% as a tax-free lump sum. Any amount taken as a lump sum above this will be taxed at your highest marginal rate of income tax. If you convert the remainder of your fund into a pension income, it will be taxed as earned income.

    But remember, the government may change the tax rules in the future.

    If you wish to access your funds prior to retirement, you may have tax to pay.

  • Our Stakeholder Pension can run alongside the Police Pension Scheme and other occupational schemes. It can be a supplement to your current pension but shouldn't be viewed as replacement for it.

    However, like all pensions, there are contribution limits and if you have more than one pension, you need to remember the combined total must not be more than these limits otherwise you’ll be subject to tax penalties.

  • If you’re considering transferring you should speak to an Independent Financial Advisor.

    Unfunded public sector defined benefits schemes (such as the Police Pension, the Teachers Scheme and the NHS scheme) cannot be accepted in to this plan. Your current provider will be able to confirm whether you’re in a pension scheme which you can transfer.

  • We'll send you a statement each year which will show the performance of your pension so you'll be able to keep track of your fund.

    You can also contact us when you'd like an update in between your statements.

  • A Stakeholder Pension cannot be cashed in until you’re 55 years of age (57 from 2028), except within the 30 day cancellation period you have when you first take out the plan.

    Saving for your retirement should be seen as a long-term commitment. We have a range of options to choose from if you’re looking for a different type of savings or investment plan.

  • There's no interest rate with the Stakeholder Pension. Any growth in your investment is based on the performance of our Stakeholder Fund. Your capital is at risk and you might get back less than you paid in.

  • There are many options for accessing your pension savings later in life. Please read our Key Features Document for more detail.
  • If the contributions you make to your Police Mutual pension policy are to continue once your employment with the Police Service stops, you’ll need to get in touch with us to confirm how your regular payments will be made. Many forces will arrange for your payments to be automatically deducted from your pension income, but it's always worth getting in touch with us to make sure.