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Recent government legislation heralded the introduction of Stakeholder pensions, which are subject to certain regulations. These include an annual charge that must be no more than 1.5%, a minimum premium of £20, the ability to stop and start premiums with no penalty and the ability to switch providers without penalty. The introduction of Stakeholder pensions has meant that pension charges have been reduced throughout the pension industry and that the terms have improved greatly for the benefit of the consumer.

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