Stakeholder influencing reduction in yields on AVC contracts as returns fall
AVC scheme charges have been falling due to the increased competition from stakeholder pensions, according to pension consultant's Watson Wyatt AVC survey. Historically, one of the major determinants in selecting an AVC provider has been charges and since the advent of stakeholder pensions, almost all providers have been repricing their AVC contracts, first for new business and then for existing arrangements, the survey shows. Reduction in yield figures have fallen over the past year and in some cases the RIY on AVCs is lower than that of the 1%-fee on stakeholder. The reduction in c...
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