One in five small business in the UK will offer stakeholder pensions according to Legal & General, even though they do not have to.
According to research conducted by Legal & General, of the firms employing between 1 and 4 staff who are aware of stakeholder pensions, 22% will offer their employees access to a stakeholder pension scheme. In addition, 60% of those employers who intend to offer a stakeholder scheme say they will contribute into the pension plan.
The stakeholder pension legislation states that employers must offer their staff access to a stakeholder pension scheme by 8 October, 2001 unless they are exempt. Currently all employers with less than 5 employees are exempt.
Adrian Boulding, Legal & General’s pensions strategy director said: “This research shows that there are around 100,000 firms in the UK that are exempt from the stakeholder pension legislation, but say they are going to offer a stakeholder pension to their staff anyway. So tens of thousands of additional employees will be able to get a stakeholder at work.”
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