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Stakeholder has excluded poor, claims Standard Life

Stakeholder has excluded the poor from pensions rather than reaching out to them, according to Standard Life.

It also warns that providers will turn away from the new Sandler suite of products if it includes a 1 per cent charge cap.

Marketing director Barry O&#39Dwyer told the Taxbriefs conference that providers are not interested in marketing 1 per cent products as they only make a profit after 12 to 15 years.

He said stakeholder&#39s open architecture creates an ideal environment for providers to hold back for 12 years before entering the market to offer cheaper terms.

Speaking after pensions minister Andrew Smith, who had earlier described stakeholder as a success, O&#39Dwyer said no provider is marketing to the Government&#39s target market for stakeholder.

Smith said: “We want to build on stake-holder&#39s success. Over one million have been sold so far and they have pushed charges down.”

O&#39Dwyer said: “From the providers&#39 point of view, stakeholder has been a step backwards. By trying to help the poorer part of society, the stakeholder experiment has had exactly the opposite effect. The industry will not be interested in playing in the Sandler game unless it makes sense to do so.”


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