Stakeholder pensions
Stakeholder pensions came into effect from 6 April 2001. You do not need to be working to contribute to the scheme. To be eligible you must be:
- under 75 years of age, and
- resident and ordinarily resident in the UK.
Stakeholder pensions are aimed at middle earners although all people can contribute, irrespective of earnings. Middle earners are those earning between £9,500 and £20,000 per annum.
If you are employed you can claim basic rate tax relief on the amounts paid. You need only pay £2,808 into the scheme each year to get the full relief due of £3,600.
Employers with five or more employees who do not have a pensions scheme must offer access to a Stakeholder scheme.
This page was last reviewed on 16 April 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
