Stakeholder pension

A type of defined contribution scheme that has to meet minimum standards set by the government. These include:

  • a charging structure that is capped at a maximum of 1.5% a year for the first 10 years and 1% a year after that
  • there can be no penalties for altering or stopping contributions or on transferring the benefits to another scheme
Stakeholder pension providers may only refuse to accept contributions if they are less than £20.