CGU life has introduced Your Pension @ CGU, a pre-stakeholder plan.
The plan is aimed at anyone who requires a stakeholder style pension ahead of the final launch of stakeholder in April 2001.
Contributions can be as low as £20 a month. The plan also has no charges until April 2001, when stakeholder pensions will become available. CGU customers will then be able to switch free of charge to a stakeholder pension.
From April 2001 a reducing scale of charges will be introduced into Your Pension @ CGU, starting at one per cent but going down to 0.8 per cent depending on the size of the fund invested. There will also be a minimum charge of 0.4 per cent for fee-based advice.
With many companies currently introducing similar pre-stakeholder pensions, CGU is jumping on the stakeholder bandwagon. However the innovation of no charges until April 2001 may well help the product to stand out in the minds of the consumer resulting in CGU having an edge on its competitors.