Pension rates
A new simplified pensions tax regime applies from 6 April 2006. From that date, there are two controls on an individual's tax-relieved pension savings: the Annual Allowance and the Lifetime Allowance.
| Rates | 2010/2011 | 2009/2010 | 2008/2009 | 2007/2008 | 2006/2007 |
|---|---|---|---|---|---|
| Annual allowance | £255,000 | £245,000 | £235,000 | £225,000 | £215,000 |
| Lifetime allowance | £1,800,000 | £1,750,000 | £1,650,000 | £1,600,000 | £1,500,000 |
Stakeholder pensions came into effect from 6 April 2001. You do not need to be working to contribute to the scheme. To be eligible you must be:
- under 75 years of age, and
- resident and ordinarily resident in the UK.
Stakeholder pensions are aimed at middle earners although all people can contribute, irrespective of earnings. Middle earners are those earning between £9,500 and £20,000 per annum.
If you are employed you can claim basic rate tax relief on the amounts paid. You need only pay £2,808 into the scheme each year to get the full relief due of £3,600.
Employers with five or more employees who do not have a pensions scheme must offer access to a Stakeholder scheme.