A reader from Liverpool is unsure if she should get a stakeholder pension

Andrew Norton, Halifax investments expert, tackles the problem.

Sandra from Liverpool asks:

I’m planning on starting a pension fund soon but I’m not clear about what the different options are – could you tell me what a stakeholder pension is?

Andrew replies

Stakeholder pensions are a type of low-cost pension that have been available since 6th April 2001.

They are not a State pension, but are provided by financial services companies like Halifax and are designed to build up a sum of money in a tax-efficient way for use later in life.

Currently benefits can be taken between age 50 (55 from 6 April 2010) and 75.

The government has set minimum standards that companies must meet for a stakeholder pension. These are to do with payment levels, costs, access to your funds and terms and conditions.

If you have a question for Andrew, go to the myfinances.co.uk Ask the Investments Expert section

Or for more information on your investment options go to investments at Halifax