Charles is married to Valerie and is aged 65. He is a controlling director of a successful medium sized marketing company. He started to draw an annuity from his retirement annuity contract in 2004 after taking the maximum tax-free lump sum.

In addition, he has a preserved contracted in defined benefit pension from a previous employment that he has yet to draw. The benefit is in respect of service ending in 1995.

His company has been contributing to his stakeholder pension plan for 5 years. The company has accumulated a large fund held on reserve which Charles and his fellow directors would like to be directed to the plan just before he draws benefits from all remaining arrangements in this tax year.

Charles would like to provide the maximum annuity to his wife in the event of his death from his stakeholder plan as she is totally reliant upon his income.