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L&G charges on

Legal & General is entering the market for stakeholder-friendly pensions with its single charge pre-stakeholder group personal pension.

Flexibility is the most important feature of stakeholder friendly pensions and this product is competitive compared to some products which claim to meet the stakeholder criteria.

There is a minimum contribution of £20 a month, which can be stopped and restarted at any time.

The pension has no initial charge and has a tiered annual management charge that reduces as the total fund grows. Up to £24,999, the annual management charge is one per cent This charge is reduced to 0.8 per cent when the fund value reaches £25,000 and again reduced to 0.6 per cent when the fund reaches £50,000.

This is competitive compared to similar pre-stakeholder products such as Eagle Star&#39s group personal pension, which reduced the annual management to 0.8 per cent when the total fund value reaches £50,000.

The Legal & General product is not so good on the fund links because investors can only use Legal and General&#39s unit-linked and with-profits funds. However, Legal & General intend to remedy this by adding external funds when the stakeholder rules are introduced in April 2001.

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