They were intended to encourage more long-term saving for retirement, particularly among those on low to moderate earnings. To meet regulatory requirements, stakeholder funds must follow rules set out in legislation, including limits on charges and minimum contribution thresholds.
Since 2012 and the introduction of Auto Enrolment, stakeholder pensions have become less widely used as employers are now required to automatically enrol eligible employees into workplace pension schemes. However, we continue to support existing stakeholder funds and ensure all regulatory requirements for these are met.