Please tell me if this is a workable way of getting 8% "interest" on say £16,000...using a Stakeholder Pension. (for a 62 yr man earning £20k per year.)
A lump sum investment of £16,000 plus £4,000 added by Her Majesty.....
The pension fund will be £20,000. Buy an annuity immediately and receive a pension each year of £1,280. (according to Norwich Union).
This is equivalent of receiving 8% per year on £16,000.
...or is there a better method?