Marks & Spencer leapt into the stakeholder pensions market yesterday with the launch of the cheapest pension model so far, reports The Times.

The scheme will be aimed at M&S's six million store card holders, half of whom have no pension. By charging 0.7% a year and allowing savers to deposit £10 a month, the scheme meets the stakeholder criteria of keeping fees at 1% or less. It also contradicts the pension industry's concern that the level of charges set by the Government is too low.