What are Stakeholder Pensions?

Stakeholder pensions are low cost pensions that people can take out to provide or boost their income after retirement. Tax relief is normally available on contributions up to £3,600 or 100% of a persons earnings, if greater, subject to the annual limit set by Her Majesty’s Revenue and Customs (HMRC). Through the contributions paid, the tax relief and the investment returns earned, people can build up a fund which they can use to buy a pension when they are older or retire.

Because stakeholder pensions have to satisfy a number of minimum standards set by the government, they are flexible and offer value for money. They are available to almost everybody but are primarily designed for people without access to an employer sponsored (occupational) pension arrangement.

It is possible for an individual to contribute up to £3,600 per year, gross of (including) tax relief even if they are not working. Working people can contribute up to an amount equal to the greater of £3,600 or 100% of their earnings (including the tax relief in either case).

Anyone eligible to join an occupational pension scheme should certainly consider doing so, but may also contribute to a stakeholder pension scheme if they wish. Other options may be available to individuals wishing to take out or top-up a pension arrangement and anyone in doubt as to whether the TUC Stakeholder Pension is the right option for them should seek financial advice.

Stakeholder pensions are widely available from financial services companies but the TUC provides its own stakeholder pension scheme. Our stakeholder pension scheme is designed to be one of the best schemes available, providing working people and their families with a first class way to save for retirement. .

We have asked Prudential,- a leading UK pensions company – to run the scheme. We believe that their pensions expertise, combined with the TUC’s record of looking after working people, means that the TUC Stakeholder Pension Scheme is one of the best available in the UK.

Find out about the benefits of the TUC Stakeholder Pension Scheme here.

The TUC has provided more information about stakeholder pensions for the following groups of people:

• Union Reps
• Employees
• Employers

Fill out this form to order a free information pack.

Back to top