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Huge gap between pension payouts

There is a massive gap between the best and worstperforming personal pensions, according to the Money Marketing Online with-profits survey.

It reveals that Liverpool Victoria tops the tables for£25 a month with-profits personal pensions taken out six months before an investor&#39s 45th birthday with retirement at age 65, with a payout of £32,223, including the terminal bonus.

The worst performer is Scottish Widows at £15,428, less than half the payout of the top firm.

Standard Life has the best payout over the same term on a £25 a month unit-linked personal pension managed fund at £10,795, which is 21 per cent better than the worst performer, Guardian, with £8,944.

Scottish Widows head of marketing (technical) Ian Naismith says the company&#39s payout is reasonable and that the results reflect how much other companies are subsidising with-profits through smoothing.

He says: “Our investments have not been the best in the industry but it looks as though Liverpool Victoria is very high rather than we are extremely low.”

Informed Choice managing director Nick Bamford says: “It is what you would expect really. A managed fund will more closely reflect the current situation in the equity market and with with-profits, in difficult investment times, the policyholder does benefit from the smoothing process.”

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