Anachronistic charging still a problem afterstakeholder

Professional Adviser
clock

Few pension providers have reduced charges in line with stakeholder on all their pre-existing pension contracts, but although this would appear to unfairly impact on the financial health of policyholders, the issue is not that clear cut

Overpriced and still here, pre-stakeholder personal pension plans that retain a two-tier annual charging structure and early termination penalties may damage a policyholders financial health. However, when providers introduced their stakeholder schemes in April 2001, only a minority eliminated these and other anachronistic charging features on all pre-existing pension contracts. This issue needs to be handled carefully by the industry. It would be all too easy for the consumer press to identify which companies appear to be on the side of the angels and hang the rest by their thumbs. But,...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •