The existing stakeholder pension will form the basis for the pensions product to be included in the Sandler suite of products the Treasury has said today.
As with the other products to be included in the suite, the pensions product will have strict limits on features, a 1 per cent annual management charge and limits on investment risk.
The Treasury consultation on the suite published today says other than the investment risk element the existing stakeholder pension satisfies these requirements and so it makes sense for it to be the model for the new product.
It says the Government is not attracted to proposals which would lead to two separate pensions products, saying that would not accomplish much.
Instead, it outlines two possibilities, one that stakeholder providers will be required to offer a “Sandler” investment restricted fund or that the existing stakeholder pension will be absorbed into the Sandler suite, with the latter being the preferred option.