Stakeholder pension schemes
Introduction
Stakeholder pensions provide a way for your employees to save for their retirement. Using their own money, together with tax relief and investment returns, your employees can buy a pension which will give them a regular income for life when they retire. Stakeholder pension schemes are low-charge pensions meant for people who do not have access to an occupational pension or a good-value personal pension.
Do I have to offer access to a stakeholder pension?
Not in all cases. In certain circumstances you may be exempt
Do I have to make contributions as well?
No, you do not have to make contributions to your employees' pension funds if you do not want to. You don't even have to join the scheme yourself if you don't want to.
What are the main features of stakeholder pensions?
Stakeholder pension schemes have been designed to offer low charges, flexibility and security. They must also offer low minimum contributions of £20 or less and no transfer costs.
They require tax approval from HM Revenue & Customs and have to be registered with the Pensions Regulator.