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50% of adults unaware of stakeholder

More than half of all UK adults have not heard of stakeholder pensions,

according to a survey by market researcher Mintel.

But pension experts claim they could be the lucky ones as there is a real risk of mass pension misbuying.

The survey says the proportion of UK consumers with no pension provision

is high, accounting for almost a quarter of the 1,268 adults questioned,

with many consum-ers saying they cannot aff-ord to contribute to a pension

every month.

Mintel says when it comes to stakeholder pensions, about 22.7 million

consumers, about 58 per cent of adults, have never heard of the productand

just 15 per cent of thecore market earning £9,500to £20,000

intend to take outa stakeholder plan.

Mintel suggests this is because the media has not provided much

information on stakeholder .

Financial consultant Graham Collett says: “While a lot has been written

about stakeholder pensions in the specialist financial press and the

broadsheets, there has been little information provided in the national

press or mainstream television.

“This may in part explain why so many respondents are unaware of the

stakehol-der pension.”

But pension experts say this could be to consumers&#39 advantage.

Scottish Life head of pensions strategy Steve Bee says: “I am more

interested in what people have heard about stakeholder than the number that

have not heard of it. People really ought to be wary of the product.

“The message from the Government is that stakeholder is a simple product

and implies it is good for all. But there is a massive opportunity for

people to misbuy stakeholder and a little bit of knowledge can often be

worse than none.”

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