Companies such as Norwich Union and AXA have recently made statements that they will be concentrating on larger stakeholder pensions, rather than those for individuals. Standard Life have also come out with the same message and it appears that more will follow.
Individual stakeholder pensions carry a heavy administration burden and all providers believe it more profitable to deal with group schemes in bulk. This comes from the small or negligible profitability margin allowed by a 1% charge.
The 1% charge is currently being debated by the industry and many people believe it will have to be reworked if stakeholder pensions are to be successful.
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