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Pensioners are growing as a proportion of our population. At the same time the working population, which funds our State Pension Scheme through National Insurance Contributions, is shrinking.

To relieve the strain on funding in the future, the Government is planning to cut back State pensions. But this could leave pensioners facing a shortfall in their incomes at a time when they should be able to sit back and enjoy their retirement.

The Government believes the best way to prevent such a shortfall is to persuade people to save for themselves through a private pension arrangement. It has designed the Stakeholder Pension as a low cost, flexible, tax efficient plan to persuade those who have never saved into a pension before to make their first contributions, and those who already have a pension to increase their savings.