Stakeholder Pensions Taking Off

Published / Last Updated on 17/11/2006

Research has shown that almost the same number of applications was made in the first quarter of this year, compared to all of 2005. Stakeholder pensions are proving to be very popular and are the second most sold pension product.

However, the research has also found that only 5 per cent of the consumers questioned said that they trusted pension companies to help them achieve best results from their savings.

Our view

Complete and utter twaddle. The only reason Stakeholder pensions have increased in sales volume is because annual management charges on them were allowed to be increased by 50% from 1.0% pa to 1.5%pa meaning that more commissions can be paid to financial advisers.

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