Stakeholder pensions go on sale for the first time today.
Alistair Darling said: “Stakeholder pensions are a low cost, secure and flexible pension option for moderate and higher earners. Two in five working people have no pension for their old age apart from their state pension. We want people who can save to do so – and stakeholder pension gives people more options.”
“By law stakeholder pension must meet a number of standards to make sure they offer value for money, flexibility and security. These standards include the following:
- A stakeholder pension scheme cannot charge more than 1% on the value of each member’s fund.
- Members of a stakeholder pension scheme must be able to transfer into, or out of, the scheme without facing any charge.
- All stakeholder pension schemes will accept contributions of as little as £20, but some may accept less.”
The Government is introducing the Pension Credit from 2003 that will reward pensioners who have saved for their retirement. People who have income from a second pension or savings and who qualify for the credit will be rewarded with a cash top up.
For information on stakeholder pensions ring 0845 7 31 32 33 for a copy of ‘Stakeholder Pension-Your Guide’ or look at website www.pensionguide.gov.uk. Impartial advice on stakeholder pensions is also available at the Occupational Pensions Advisory Service (OPAS) helpline on 0845 601 2923
See our Expert Guide How to: Choose a stakeholder pension