Stakeholders were introduced in order to provide a straightforward low cost pension product aimed at encouraging low to middle income earners who did not have any pension provision to save towards retirement.

A stakeholder plan is not allowed to charge more than 1.5% as an annual management charge for the first 10 years of it being established, and thereafter, only 1%.

Limits on contributions are low, you can invest as little as £20 per month, and swap schemes or funds as often as you wish without charge.

As the primary focus of the stakeholder is on costs, and the amounts contributed are generally quite small, we have a relatively concentrated buy list of funds, split between two providers. The risk profile of the fund will be dictated by the style of management as well as the investment area into which the money is invested. * is lower risk and ***** is higher risk.

We have a number of investment recommendations in certain areas of the market. They are summarised as below:-

WARNING - If you are a GROUP client with investment restrictions (such as PwC), please make sure that you check that the following comply with any independence requirements.

Fund name	Risk Profile	Buy Note	Forms
L&G Global Equity 60:40 Index Fund	****
L&G Managed Fund	***
L&G UK Equity Index Fund	***
Aviva Mixed Investment (40-85% Shares)	***
Aviva Mixed Investment (0-35% Shares)	**
Alliance Trust Sustainable Future Global Growth Fund	****
Aviva UK Equity Fund	***