In order to make stakeholder pensions more attractive to UK employees, the government has set a cap on the charge that can be made on a shareholder pension. The maximum level for this charge is currently set at just 1%, which compares favourably with other offerings on the market.

Stakeholder pensions are aimed at providing a more transparent product, with more accountability. Unlike other pension schemes, you can transfer your stakeholder pension if you change jobs, without incurring a charge. This is aimed at ensuring that these pensions are very flexible. There is also the flexibility to allow you to cover yourself if you are wishing to change your working circumstances, by taking a career break or something similar.

There are a number of providers available on the market and, as a general rule, you should join a stakeholder pension scheme as early as possible. As with other pension schemes, this will maximise your chances of gaining a reasonable income for your retirement.

Some common questions