UK - Six out of 10 stakeholder pensions have been taken out by builders who have joined the B&CE Insurance scheme, new figures show.
The Association of British Insurers (ABI) said that of the 224,506 stakeholder pensions taken out by the end of June 137,413 were by members of the B&CE Insurance Easy Build Scheme.
B&CE Insurance director John Jory said: “We are one of the few organisations that are targeting exactly the sort of people the government had in mind for stakeholder pensions – the low to middle earners.”
Currently only around 10,000 of the builders signed up to its scheme are making contributions from their salaries and most contributions are being made by 6000 employers who are making payments of £5 a week for each their employees.
B&CE Insurance has used the start of its stakeholder scheme to close its £1bn B&CE Lump Sum Retirement Benefits Scheme.
Jory said: “The lump sum scheme provided the icing on the cake for Serps, but that never materialised as being a vehicle to provide a regular reasonable income on retirement. The flexibility of stakeholder helps too, as there are no penalties on stopping and starting, whereas with an occupational scheme that is not the case.”
At its close, the B&CE scheme had one million members. It currently has Baring Asset Management and Barclays Global Investors as managers.
By David Rowley
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