Pressure of stakeholder has led to a fall in AVC charges to 0.7% per year, according to annual survey from hewitt bacon & woodrow
Charges on AVC schemes have come down to 0.7% per year and fund choice is widening due to the competitive pressures on stakeholder pensions, according to Hewitt Bacon & Woodrow's annual AVC survey. However, the group believes the AVC market is becoming badly affected by such pressures and the presence of too much choice may have a detrimental affect on investors. Chris Cairns, of Hewitt Bacon & Woodrow, said: 'Last year, charges were 0.8% on average and have dropped to 0.7% this year, well below the maximum stakeholder charge. These levels are beneficial to scheme members but provide le...
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