Stakeholder Pension And Saving UK
Stakeholder pensions have already made a significant impact on pensions provision in the UK with nearly 2 million sold. We must now meet the challenge of encouraging more people on lower and moderate incomes to save for their retirement. The new suite of savings products will be easier for people to access and they will be risk-controlled. In the case of the pension product we are requiring providers to move funds into less volatile investments in the run-up to retirement as a safeguard against investment risk. Following an extensive consultation with consumer groups, experts and providers we have decided that a revised charge cap is appropriate. The new structure will incentivise providers to market the new stakeholders more actively, and continue to guarantee a very good deal for the customer. Because the charge falls after 10 years, people will be encouraged to save for the long term.
