Millions of people could miss out on the tax benefits of stakeholder because they are not aware that non-earners can take out the plans, according to HSBC.
Research by the bank suggests up to 40 per cent of people think stakeholders are only for those who are working. But under the new reg-ime, even people who are not working or receiving an inc-ome can get tax relief on stakeholder contributions of up to £3,600 a year.
HSBC has identified four key situations where non-earners can benefit from the stakeholder tax breaks.
These include those wanting to take a career break but still save for retirement, as well as husbands and wives wanting a stakeholder for their non-earning spouses. One-off christening gifts of lump sums, or paying child benefit up to the age of 16 years into a stakeholder can also build up pension income for grandchildren and children.
Head of life, health and pensions Harpal Karlcut says: “For the first time pensions are available to people without an income. This new flexibility will enable those not working to plan for retirement.”