| Commentary

32.3 Stakeholder pensions

| Commentary

32.3 Stakeholder pensions

A stakeholder pension is a type of personal pension plan in that it is a money purchase arrangement designed to provide a lump sum and income in retirement. Stakeholder pensions were introduced as from the tax year 2001/02 as a way of encouraging more people, particularly the lower-paid, to make provision for retirement1. Consequently, a stakeholder pension is open to everyone and there are no minimum age restrictions, although a taxpayer must be under 75 to set one up2. In addition, the minimum contribution cannot be greater than £20 in any period, whether regular or a one-off

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