The Association of British Insurers at a recent conference has indicated that they would like the 1% charge cap on Stakeholder pensions either increased or even abolished. The reasoning behind this is that they think price capping will limit people buying products. Mr Gee, head of life assurance at the ABI said, "to reach the target group of moderate earners they [financial products] will need to be actively promoted and explained, often through a face-to-face sales process. So we must be very careful that price caps do not make the cost of selling the products prohibitive".
This saga continues with many discussions throughout the industry. At this moment in time, a long-term decision appears some way off.
Learn more about low charge Stakeholder Pensions in the Stakeholder Cafe.com.