Scottish Widows will offer access to external funds as part of its stakeholder proposal from April 2...
Scottish Widows will offer access to external funds as part of its stakeholder proposal from April 2001.
Portfolios from Newton, Merrill Lynch and Schroders will be available, as well as its own funds, including an Environmental, UK Equity, North American and Global Equity portfolio with the same annual management charge of 1%.
The company is also reviewing its charging structure to bring a single annual charge to its pension products that pushes them all below the 1% stakeholder requirement.
In October, Standard Life announced its existing base of 750,000 pension policy holders would have their total charge cut to 0.825% or less and all customers for stakeholder, personal and group personal pensions would have a single annual charge expressed as a percentage of the fund.
Scottish Widows is reducing its charging for approximately 278,000 existing personal pension policyholders from April 2001 to an annual fee of 0.875% a year and maximum 0.125% administration charge.
George Andrew, senior manager of stakeholder pensions, said the choice of 17 investment funds would meet the vast majority of clients' needs.
The company is the first to announce full details of its operation and plans to continue paying up-front initial commission to intermediaries at either 45% on the first regular contribution with 1% level commission on all subsequent contributions.
Level commission is paid at a level 4% on every contribution received or a fund-based renewal commission rate of 0.36% a year.
Scottish Widows has also produced a range of material, including a CD Rom, to support IFAs in the run up to April.
More than half of people over the age of 55 see financial security as a top priority in retirement, yet a third allocate more time to buying a new car, research from Legal & General (L&G) has found.
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Alongside Barrett, Hopkins, Boston and Thorman on 17 October