Rules on stakeholder pensions changed
Eight million people earning under £30,000 a year will be able to contribute to a stakeholder pension and continue to belong to their employer's defined benefit pension scheme, the government has announced.
The ammendment to the 2000 Finance Bill means fewer people will have to choose between remaining in an occupational scheme and taking out a stakeholder pension.
And the move to allow people to increase their pension provision has been praised by the National Association of Pension Funds.
‘This is the single most important decision announced by the government in its pensions review,’ said chairman of the NAPF Alan Pickering.
‘It is a vital simplification of the system, which will significantly increase the prospects of success for stakeholder pensions while avoiding collateral damage to occupational scheme,’ he added.
Details of the changes can be found by clicking here.