Introduction
The Government introduced a new type of pension scheme
called Stakeholder pensions in April 2001. They ended an era of rip off pension plans.
Unlike existing personal pensions, stakeholders are lower cost and are flexible so they can be moved around without penalties. (You can read more about this in charges and flexibility)
However take up of the stakeholder pension has been well below
expectations. It seems that it has mainly benefitted the rich by
providing them with a vehicle for playing with their money, for
example as a way of saving for their childrens' futures.
Stakeholder Pensions Full Contents
Who's it for?
The UK Stakeholder pension was supposed to be aimed at those on
"moderate earnings".
But, after it's launch, the government claimed it was always intended
for anyone.
Anyone from a newborn baby to a granny can have a Stakeholder Pension.
Stakeholder Pensions Full Contents
How much can you pay in?
If you are not earning, The maximum you can put
into a Stakeholder is £3,600 pa gross (i.e. including the tax
benefit)
If you are earning the same limits apply as for
personal and occupational pensions - and that's as much as you like up to the annual £255,000 limit provided the money come from employment or self employment and not savings or dividends.
Stakeholder Pensions Full Contents
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