Stakeholder Pensions Popular among Brits

Brits investing in stakeholder pension have seen a 4.38% growth as the contributions have increased to £13,994, up from £10,800 in 2001.

Let us remind that this scheme has initially been launched to encourage people save for their pensions. Now it has attracted £20.75 billion worth of contributions from 1.86 million people around the United Kingdom. MetLife Europe Limited has recently analysed the private pensions sector and estimated that savers are benefitting not only from tax relief but also from regular contributions via stock market cycles.

The new British Government currently plans to replace the stakeholders pension with a new scheme, National Employment Savings Trust, which might play a key role in the popularity of retirement saving.

Dominic Grinstead of MetLife said that the stakeholder pension scheme has been successful, and the National Employment Savings Trust will definitely attract more savers in case it will provide them with guarantees on capital and income.