§ Mrs. LaitTo ask the Secretary of State for Social Security what the target market is for stakeholder pensions; and what the definition of success in that market will be before the Stage 2 of the State Second Pension is introduced. [122592]
§ Mr. RookerStakeholder pensions are primarily intended for moderate earners—those earning between about £10,000 and £20,000 a year—but many higher earners will also be able to take advantage of the lower charges, greater flexibility, and simpler tax regime which stakeholder pension schemes will introduce.
The Pensions Green Paper explains that we expect the new State Second Pension to become a flat-rate scheme for those on lower earnings when stakeholder pension schemes have established themselves as low-cost, value-for-money, funded second pensions.