Winterthur Life is removing the 1 per cent contribution charge on
regular-premium pensions next month due to stakeholder pressure and to make
investment returns more competitive.
It says personal and executive pensions in its regular-premium range offer
an alternative to stakeholder for clients who want a cost-effective premium
It says people with a 1 per cent stakeholder contract face a reduction in
yield of 1.07 per cent on their investment and could now get a higher
return on their investment with Winterthur.
With the removal of the admin charge on July 1, clients with a regular
premium pension policy worth £250,000 will face a reduction-in-yield
charge of 0.35 per cent, those with £100,000 face an RIY of 0.4 per
cent and on £50,000 it will be 0.47 per cent.
The new charging structure applies to everyone who have taken a policy out
since November 1999 as well as new policyholders. Winterthur says this is
commercially viable because it has streamlined processes and systems.
Individual pensions product manager Sandra Fulton says: “This lets IFAs
offer a better contract to clients.”