Low-earners and people who are not working are to be encouraged to put their
savings into a pension.
A new Government consultation paper proposes to end the tie-up between
pension contributions and income.
Until now all pension contributions have been limited to a percentage of
annual income, excluding people like carers, mature students, and partners
who do not work.
The plans will make it easier for those people who do not currently have
access to a pension other than the state provision to take one out, and will
allow them to contribute up to 3,600 pounds a year without a link to
The Government says a key strand to the success of ‘stakeholder’ pensions is
to make it easier, simpler and cheaper for people to save for their
The proposals now outlined are more generous than in the Government’s
Pensions Green Paper, published in December 1998.
They come in the final consultation brief on detailed aspects of the
stakeholder pension proposals outlined in the Green Paper and can be found
on the internet at www.inlandrevenue.gov\uk. Â Comments are requested by the
end of October.