What are Stakeholder Pensions?
Stakeholder Pensions are low-cost private pensions, available from 6 April 2001. They are meant for people who currently don’t have a good range of pension options available, so they can save for their retirement. If you earn more than £30,000 per year and are in a company pension scheme, you cannot take out a Stakeholder Pension as well. However, everyone else can have a Stakeholder Pension, even non-taxpayers, non-earners and children. Contribution limits are based on earnings, but even if you don’t have any earnings, you can pay up to £2,808 into a Stakeholder Pension and this will be topped up to £3,600 by the Government. Employers with more than five employees have to provide access to Stakeholder Pensions with effect from 6 October 2001.
