Following my questioning of Norwich Union's ability to predict the length of time before they can make a profit out of a stakeholder pension (Money Marketing, August 29), it has not taken long for them to decide that they will never make a profit out of some of these policies (Money Marketing, October 31).
I don't suppose that there is any point in asking how much they will lose on these policies. Presumably, the same person will be asked to give his best guess again.
Now IFAs are being told that they must market and service pension clients for no remuneration.
Is there any wonder that companies marketing pensions have seen their shares halve in value and with-profits policy values decimated, with the consequential distress to holders of pension plans and low-cost endowments.
Everybody loses out except the people who made the mistake in the first place.
The sooner that Norwich Union and the other major providers ditch stakeholder charging pensions and start marketing the old-style pension schemes, the sooner they will start making profits again and IFAs will start earning a fair return.