Stakeholder Pensions

Stakeholder pensions is a relatively redundant term in its technical pre-April 2006 sense, although it is expected to continue as a marketing/descriptive term.

What you need to know post April 2006 - if you have an existing Stakeholder pension contract, it will continue as a Money Purchase Arrangement, and you/your employer can invest as much as you like, subject to the Annual and Lifetime Allowance rules.

The information below relates to pre-April 2006 Stakeholder Pensions

This is a low cost pension contract that can be used by a wide range of people who wish to save for their retirement:

• Are you under 75?

• Do you qualify under UK Residency rules? (Yes, unless you have recently arrived/departed the UK, in which case, seek advice).

• Are you in an Occupational Scheme, (if yes, and you are earning more than £30,000 a year you may not be able to have a Stakeholder). If you are earning less than £30,000 per annum and in an occupational pension scheme you can not contribute more than £300 per month gross.

• Are you, or have you ever been, a Controlling Director? (If so, seek advice, as you may not be able to have a Stakeholder. You may be/have been a Controlling Director if you hold/held shares in a company that you owned or controlled, albeit in conjunction with co-owners, friends or family).

It is worth noting that there are NO requirements relating to income or work up to contributions of £3,600 per annum.