UK - Stakeholder pensions are not suitable for established members of occupational schemes, a new FSA study admits.
The FSA paper – To Switch or Not to Switch, That’s the Question – states that the potential gains from switching are sensitive to the timing of the decision.
Scottish Equitable manager of pensions development Margaret Craig agreed with the findings and said members of occupational pension schemes are often better staying put.
She said: “If you have been in your employer scheme for quite a while and built up a reasonable level of benefit there, even if the employer was prepared to contribute to the stakeholder scheme, dependent on the nature of the benefits, people could be far better sticking with what they have got.”
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).