• Benefits can be taken at any age between 50 and 75. The exception to this rule is that any benefits arising from contracted-out contributions cannot be taken before age 60. Members do not actually have to retire from work to take their benefits. If they want, they are allowed to take up their benefits in stages.
• Up to a quarter of the stakeholder pension fund can be drawn as a tax-free cash sum. Members cannot take as a tax-free cash sum any benefits arising from their contracting-out contributions.
• The balance of the fund left after taking the tax-free cash sum must be used to provide an income. That means either buying an annuity or drawing an income directly from the fund. At present the rule is that members have to buy an annuity be age 75 at the latest.
• If a member dies before taking retirement benefits, the value of the fund is normally payable to their estate as a lump sum free of inheritance tax.
• Life Assurance can be added to a stakeholder plan, although some stakeholder plans might not offer this facility from April 2001. The maximum amount life cover will generally be lower than under the pre-April 2001 rules. The changes are covered in the next section on contributions.
• Waiver of contribution benefit: Under the pre-April 2001 rules, members can protect their pension contributions if they are off work because of illness. Under this feature, which is usually called waiver of contribution of benefit, the insurance company continues to make contributions for a member who is ill.

WARNING: from April 2001, it will not be possible to add this feature to a pension plan and it will be necessary to take out a separate contract to protect pension contributions.