Who can apply for a pension?

Under previous legislation unless you were in receipt of earned income and liable to pay UK tax, you could not pay into a Personal Pension. Under changes with effect from 6th April 2001, almost everyone can pay up to £3,600 p.a. into a Personal or Stakeholder Pension without emphasis on earnings. These include:

  • Housewives
  • Pensioners
  • Children
  • Self Employed
  • Employed
  • Unemployed

You cannot pay into a Stakeholder Pension if you fall into one of the following categories:

  • Not ordinarily "resident and ordinarily resident" in the UK, unless in receipt of "net relevant earnings" which are chargeable to UK income tax, or either a "Crown servant" or the spouse of a "Crown servant" working overseas.
  • A member of an occupational pension scheme, unless your earnings in the last tax year were less than £30,000 and have not been a controlling director at any time since 6 April 2000.
  • Age 75 or over.
  • Children under the age of 16 cannot pay into a pension themselves. However, you can pay into a pension on behalf of a child under 16.