Stakeholder Pension schemes are secure, flexible, low cost and value for money pension schemes. They are meant for people who currently do not have a good range of pension options available to save for retirement.

You can invest into a stakeholder pension plan at any level up to the Inland Revenue permitted maximum of percentage of net relevant earnings or £3,600 gross per annum, whichever the greater, using your best year's earnings from the last five tax years (see basis year election) where you were not a member of a company pension scheme.

Alternatively, if you are a member of a company scheme earning less than £30,000 you can still pay into a stakeholder pension, this is known as concurrency.

Age at 6th April	% Net Relevant Earnings
35 or less	17.5
36-45	20
46-50	25
51-55	30
56-60	35
61-75	40
Net Relevant Earnings are typically earned income up to the earnings cap (£105,600 for the 2005/06 tax year)

You use your own money to build up your pension fund. Your Stakeholder Pension Scheme will put your contributions into investments such as stocks and shares, property or cash and fixed interest for you, you can decide.

At retirement, up to 25% of the pension fund value can be taken as tax-free cash and the balance used to provide an income. Benefits from your pension can be taken in many ways and you can choose what is best to suit your circumstances.