Virgin Direct will be offering stakeholder pensions to companies with as few as two employees wi...
Virgin Direct will be offering stakeholder pensions to companies with as few as two employees with an annual charge capped at 1%, writes Jenne Mannion
It differs from the widespread belief in the industry that targeting smaller schemes would be economically unviable unless the 1% charge is raised.
Gordon Maw, marketing manager at Virgin Direct, said the group could offer stakeholder pensions over the phone, significantly reducing charges otherwise associated with face- to-face consultation.
He added: "Smaller companies should not opt out of stakeholder pensions because of difficulty in targeting groups with fewer employees. Stakeholder pensions are not like setting up traditional group pension schemes or the pension money arrangements.
"The service, incorporating advice, could be done over the phone. Virgin Direct already offers other personal pension products, with advice, over the phone. It is considered by the industry to be difficult but we have proved otherwise."
The Virgin Direct product would not incorporate a waiver option. Maw said: "We don't offer waivers on personal pensions. We don't consider waivers add value to the customers' product."
When asked how smaller companies which require face-to-face consultation would be handled, Maw said: "That is an unknown we are yet to sort out, but we believe it can be done properly over the telephone."
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