Scottish Mutual estimates the 1% annual charge on stakeholder will prove more expensive to many long...
Scottish Mutual estimates the 1% annual charge on stakeholder will prove more expensive to many long term investors than a traditional front end loaded scheme. Assuming a 7% growth rate in the fund, the life office says younger investors could pay up to 15% more in charges by taking the stakeholder route. Leslie Grey, Scottish Mutual's pensions development director, said: "A person in their mid-20s might be better off investing in other pension products, as stakeholder's flat fees can mean greater charges." Grey said the rounded off figures indicated front-loaded policies would generally...
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