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. Those in receipt of an earned income can typically pay up to their income into personal and company pensions. That means that almost everyone can pay into a pension, these include:

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

You cannot pay into a Personal or 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.
  • 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.