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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.”


New Star International – Strategic Government Bond Fund

Type: Offshore Oeic Aim: Income and growth by investing in US-denominated Government bonds Minimum investment: Lump sum $5,000, Œ5,000, £3,500 Yield: 5% a year Investment split: 35% US, 31% Latin America, 22% Europe, 6% Asia, 6% other Place of registration: Dublin Charges: Initial 5.25%, annual 1.25% Commission: Initial 3%, renewal 0.3% Tel: 00 353 1475 […]

Buchanan takes on group role for Royal London

Scottish Life head of communications Alasdair Buchanan has taken on the additional role of head of group communications. He will now handle external communications for the entire Royal London group as well as Scottish Life.Buchanan, who is a qualified actuary, has been with Scottish Life since 1996 and became head of communications in 2000. He […]

Correspondent&#39s week

Working from home on Monday and have the day nicely mapped out until a rash of calls from consumer press journalists on the new ING Direct savings account seeking opinion.ING has launched a new savings account with the best AER on an easy access account.As a result, I liaise with Lansons, our PR agency, to […]

Inside edge

“I know we have not sold any units of this fund for seven years but if we just hang on a bit longer, I reckon this one is going to come back into the spotlight and we will regret closing it.”This plea or something similar is being made in many fund management marketing meetings every […]

State of the markets: global growth

In conversation with journalist Alexis Xydias, Artemis Global Growth Fund manager Peter Saacke discusses the state of global markets and how he is positioning his fund. Peter gives his views on the growth potential of US, Europe and emerging markets, each of which is on a different stage of the road to recovery. And with a […]


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