Pension charges may go up after RU64 is abolished

Steven Cameron, business development manager at Scottish Equitable, says, “At the moment, for some individuals, advisers cannot offer individual pensions advice because the charges are too low.” This, he says, is because RU64 requires IFAs to explain why stakeholder pensions are not a better product than the pension package being recommended. IFAs, providers and industry bodies argue the rule restricts the distribution of pensions to the mid to low-earner market as stakeholder has a capped charging structure which leaves little or no money for the cost of advice. “In these circumstan...