FSA survey shows current pension pricing is unsustainable - Scot Life

The firm says the survey, published this month, indicates “the persistency for personal pensions continues to fall” with just 42.3% of IFA-advised clients retaining their personal pension after four years, compared to 45.9% in the 2006 survey and more than 70% in the first survey in 1998. Annual management charge (AMC)-only pricing structures typically require customers to keep their plan for most of its lifetime to generate profit for the provider. Scottish Life says this means providers can end up facing a significant loss if customers do not maintain regular contributions into their ...