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NU is quick off the mark with Sandler savings plan

Norwich Union has become one of the first providers to offer a Sandler-style medium-term savings product.

The Sandler suite, which includes a pension, medium-term investment fund and child trust fund charged at 1.5 per cent, came into force yesterday.

NU’s plan will be available for IFAs to sell through the light-touch regime of basic advice.

It has a minimum regular or single premium of 20 with no maximum. Annual charges are capped at 1.5 per cent for 10 years and 1 per cent thereafter.

The product is designed for a savings period of between five and 15 years but there are no minimum or maximum terms.

The fund meets stakeholder requirements which limit equity exposure to 60 per cent.

Director of product strategy Simon Quick says. “The product is easily available and gives the consumer flexibility in terms of the amount, length of time and how they wish to save, either through investing on a regular monthly basis or with ad hoc lump sums.”

But Professional Partnerships financial planner Edward Nice is concerned that there is a danger the product could be missold. He says: “I am not sure how well an unqualified adviser – who is not even required to have FPC1 – will deal with questions about the split between equities and corporate bonds.

“I am worried about confused or misinformed consumers taking out these products which are still, after all, up to 60 per cent in equities when people with smaller levels of savings are actually less likely to be tolerant of falls in the values of their investments.”


Pru adds funds to bond wrapper

Prudential is adding nine new income-generating portfolios for inclusion in its flexible investment plan investment bond wrapper from 25 April.

UK wealth creation is bigger and better than Europe, says DTI

UK wealth creation rises 15 per cent on last year, with UK large companies beating European counterparts in the DTIs value added fourth annual scoreboard 2005.The scoreboard finds more UK companies in the top league than any other European country, creating wealth more efficiently and performing better against its competitors. Key findings include the UK […]

Ken Davy

The network pioneer now believes that the days of the network are gone with depolarisation and that advisers would be better off being directly regulated and signing up with a support services firm.

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.


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