The 1% rule is to be scrapped in favour of a new pricing system permitting companies to take an upfront percentage of the amount invested in addition to the 1% AMC, says today's Independent.
The paper says the deal, revealed by "sources" will apply to both stakeholder pensions and "a range of medium- and long-term savigns products, which are due to be launched by the government next year." "The final details of the proposals are being drafted this week, with the government expected to settle on either a 3% or 5% initial charge on all contributions, in addition to a likely 1% annual charge." CITY ECONOMISTS yesterday warned further interest rate rises are likely to follow yesterday's Bank of England decision to increase rates by another 0.25%. The Daily Telegraph says t...
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