The choppy seas of stakeholder

In trying to get people to take greater responsibility for their pensions, the Government has decreed that costs must come down. While acknowledging that stakeholder's 1% maximum annual administration charge will bite close to the commercial bone, ministers argue that the growth in new pensions taken out should offset this. But the stark reality is that stakeholder will only be economic for providers that cut their administration costs from normal levels of 3-4 % of funds under management to below 1%. For those who react too late, there could be a bloodbath that is unlikely to be confin...