Stakeholder Pensions are low cost pensions originally designed especially for people who have been unable to afford private pensions in the past.

Because they have low charges most people considering pension provisions have taken them up. Anyone can start a stakeholder plan themselves including children and people who are not working and people already drawing a pension.

The maximum amount that can be charged by a stakeholder pension 'provider' is 1% per year.

There are no penalties for starting and stopping contributions, or for transfer or early retirement of people over 50.

The minimum contribution is £20.00. This can be a one-off payment or a regular monthly payment.

The maximum contribution that can be paid regardless of age or earnings is £2808.00 per annum (net) (£3600.00 gross). You can pay more than that if the formula relating to your age and earnings allows it.

There is no obligation on any employee to join a scheme.