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Rooker sets 2.5m stake target

Pensions minister Jeff Rooker says the Government is aiming to see 2.5 million people take out a stakeholder pension within the next four years although it has no plans for compulsion.

The figure is half the target group of around five million people earning between £10,000 and £20,000 a year.

At a London conference organised by Legal & General and the Forum of Private Business, Rooker accused the pension industry of “walking along the other side of the road” from the target group.

But he said the Government was looking to private providers to make the ground fertile for stakeholder because it has marketing expertise.

Rooker emphasised that the flexibility of stakeholder means the target group is not the only market and he mentioned children and non-working spouses.

Rooker says: “If, after three or four years, half of the target group of five million do not have stakeholders, we would have to ask ourselves some questions.

“The industry has walked on the other side of the road from the target market by not offering personal pensions at a cost they could afford.

“It is Government policy to sub-contract to the private sector as it is much better than the Government at marketing and selling financial products. We are looking to the private sector to make pensions sexy for 20and 30-year-olds.”

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