Stakeholder Pensions Print
Stakeholder pensions are an adaptation of Personal Pension Plans (“PPPs”). There is a maximum management charge that may be charged in respect of a Stakeholder pension. This is currently 1.5%.
No penalties may be charged by the existing pension provider if the Stakeholder decides to take early retirement or transfer the fund to another pension provider.
Up to £3,600 gross (£2,880 Net) may be paid into Stakeholder pensions annually, without reference to the individual’s earnings in accordance with the existing limits for PPPs. Any premiums paid into a Stakeholder pension in excess of £3,600 must be paid in accordance with the rules for PPPs.
Stakeholder Pension were partly designed to encourage employers to offer pensions to employees (without the compulsion for the employer to contribute). These have now been largely superseded by the Workplace Pensions regulations.