Stakeholder Pensions
Stakeholder pensions were introduced on 6 April 2001.
They are essentially a charge-capped personal pension, with a maximum annual charge of 1.5% of the value of the fund for the first 10 years, after which point the charge must not exceed 1% per year.
A stakeholder pension has no up-front 'initial' charge. The only charge is the above annual charge.
There are no penalties if you cease paying into a stakeholder pension or transfer it elsewhere.
The advent of personal accounts in 2012, is likely to eclipse stakeholder pensions.
Employers:
Since October 2001, employers with five or more employees have been required to designate a stakeholder provider, but there has never been any requirement for employers to contribute into stakeholder pension schemes.
