Introduction to Stakeholder Pension Schemes

The Government set up Stakeholder Pension Schemes in April 2001 as low-cost pensions meant for people who currently do not have the right pension options available to save for their retirement.

In particular, this means people who cannot join an occupational pension scheme. Stakeholder pensions could be a good option for people who currently earn more than around £10,000 a year. They may also interest people who do not have an income of their own but who can afford to save for a pension.

Employers must arrange access to a Stakeholder pension scheme for employees who earn more than the National Insurance lower earnings limit. Employees can then decide whether a Stakeholder pension is right for them.

Providing access to a Stakeholder Pension Scheme does not mean that Employers have to set up and run a pension scheme.

Rosan Helmsley can advise on setting up a Stakeholder scheme for employees and take care of all the administration involved in running it, leaving employers free to run their business.