A Bacon & Woodrow survey of the country's top pensions providers has confirmed life offices' fears that stakeholder will slash margins.
The pensions consultant says the shake-up will inevitably lead to a move to single pricing, flexible annual management charges and the demise of policy fees.
The B&W Personal Pension Unit-Linked Survey found that charges on personal pensions and group personal pensions are much higher than those envisaged under stakeholder, with the average group plan more expensive over three and seven years.
Despite this Bacon & Woodrow believes the Government should not write off GPPs. It argues that many are as flexible, accessible and cost effective as many occupational pension schemes.