Broadly speaking, the difference between Stakeholder Pensions (SHP) and Personal Pensions (PP) is that SHPs are generally designed to be lower cost but the PPs will tend to offer a greater investment choice.

For both SHP & PP however, costs and choice will be different from one company to another.

You will notice that PP & SHP will have a set number of what are called ‘internal funds’ (core funds). These are a broad range of pre-packaged funds in which clients’ pension monies can be invested. This range typically offers lower, medium and higher risk/ reward strategies.

Beyond such internal funds, one may elect to invest into an array of funds which are ‘external’ to that main list; however this tends to attract an additional AMC (which Cavendish cannot reduce). PPs generally have more external funds on offer than SHPs.

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