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&#39Bigger earners buy more stakeholders&#39

People with an income of over £50,000 a year are three times

more likely to have bought a stakeholder pension than people earning

up to £11,500, according to data from market research firm Mori.

The company&#39s survey of 24,000 individuals over 16 shows that the

higher an individual&#39s income, the more likely they are to buy a

stakeholder pension.

As a base for the survey, Mori rates the average likelihood to have

bought a stakeholder pension as 1. It found that those earning over

£50,000 score 2.5 while those with incomes below £4,500

only score 0.26.

Workers earning £9,500 to £11,500 only achieve a score of

0.87 while those on £17,500 to £25,000 score 1.8.

However, out of the total amount of people surveyed, only 322 had

bought a stakeholder pension, representing just 1.34 per cent of the


Mori client services exec-utive Nick Barker says: “Stakeholder

pensions have been created for exactly the same market as Isas but,

in the same way, the majority are being sold to people on higher


“The data shows that stakeholder pensions are bought by those with

the most need to avoid paying tax.

“Low-income groups are short on cash and have to be sold pensions –

stakeholder does not allow that. The Government has shot itself in

the foot by alienating the sector of society it wants stakeholder

pensions to penetrate.”

Central Financial Planning director Ian Smith says: “It is a

combination of the mistargeting of stakeholder and the way the

minimum income guarantee and the pensions credit make it not

worthwhile to those on a low income. Maybe IFAs have done a good job

of keeping lower earners away from these products that are not

suitable for them.”


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