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 registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.