Royal London is joining the growing number of companies offering a stakeholder product, with the introduction of the Royal London stakeholder pension.
The pension is aimed at lower paid individuals who are looking for a pension that fulfills the stakeholder criteria.
Administration of the Royal London pension will be handled by Scottish Life. The pension offers access to just the one fund, the Royal London stakeholder pension managed fund, which was created at the start of April 2001.
The annual management charge is one per cent and the minimum that can be placed within it is £20.
Compared to some of the other stakeholder pensions on the market, such as the recently introduced Norwich Union stakeholder pension, called your pension @ Norwich Union, the Royal London product offers no flexibility in the choice of funds.
In contrast your pension @ Norwich Union allows investors to choose from up to six internal funds, ranging from with-profits, to UK index tracker and 16 external funds from companies such as Deutsche, Invesco, Merrill Lynch and SocGen.