Stamp duty reserve tax (SDRT), which was introduced in last year's Budget to replace stamp duty, will in effect squeeze the cap on charges for stakeholder pensions to 0.9% rather than 1%.

SDRT, which totals around 0.1%, will have to be within the 1% charging limit, which will add pressure on fund management houses. Many already believe that the low charge structure will limit competition which will lead to fewer choice for pension investors.