Stakeholder pensions are a type of personal pension, but with additional regulations. They were created to entice those eligible to save for retirement given the outlook for state benefits:
The full basic State Pension for 2005/2006 is £82.05 for a single person and £131.20 for a couple.
Men need 44 qualifying years to get a full basic State Pension and women who reach 60 before 2010 need 39 qualifying years. Source: The Pension Service.

Strict CAT (charges / cost, access, terms) standards were laid down by the government to make stakeholder pensions attractive.
Cost - Cannot exceed 1% of the fund value each year (plus stamp duty).
Access - A policy holder can start or stop payments at will.
Terms - Payments need be no more than £20 (net of basic rate tax) at a time.

Stakeholder pensions are attractive even to those who may have previously been reluctant to save for their retirement years. For an individual without any earnings, up to £3,600 gross per year may be invested, which means that you only have to pay £2,808 of that, the rest contributed by the Treasury as an incentive. Of course though, you needn't put in the maximum amount. Remember that the rules state you need only invest £20 (net of basic rate tax) at any time. 

If you are interested in starting a stakeholder pension, changing your provider or simply wish to find out more about them, remember ifasw.co.uk. We can put you in touch with a local adviser who will be more than happy to apply their experience to your circumstances - Just ask us by clicking here!