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Small firms set to boost sales of stakeholder

Small employers with fewer than five staff could give stakeholder a boost by offering their employees a pension even though they are exempt from doing so, claims Legal & General.

According to L&G&#39s research, just 54 per cent of employers with between one and four staff were aware of stakeholder but it says, of these, 22 per cent could offer employees access to a scheme.

The survey questioned 1,000 employers in total, representing smaller companies with under 49 staff. L&G found that 60 per cent intend to set up and contribute to a stakeholder.

Current regulations say all companies with five or more employees must offer access to stakeholder scheme after April 6. If they do not do so by October 8, they face a fine of up to £50,000.

The survey was carried out for L&G by Taylor Nelson Sofres between January 25 and February 16.

L&G pensions strategy director Adrian Boulding says: “This research shows that there are around 10,000 firms in the UK which 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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