People underestimate the income available from stockmarket-based income plans
People living in Yorkshire and Humberside expect to pay lower charges for an investment in a stockmarket based income plan, than the average Brit. They would also prefer to receive a regular income, paid monthly rather than a variable payment, according to research by YouGov for Synergy Financial Products Limited (Synergy).
Charges: Seven out of ten (71%) of people living in Yorkshire and Humberside who expressed an opinion believe ongoing annual charges of £25 (0.25%) or less on an investment of £10,000 in a stockmarket based income plan would be a reasonable amount to pay. This is higher than the results for the whole of Britain, where two thirds (66%) of people who expressed an opinion believe ongoing annual charges of £25 (0.25%) or less would be a reasonable amount to pay. In fact figures published by the Investment Association show that the typical ongoing annual fund charges and costs are £125 – £175 a year.¹
Synergy has launched the Synergy Lifetime Income Plan to address the high cost of investment – the plan charges just 0.25% in ongoing charges per annum.
Income: Nearly seven out of ten (67%) of people living in Yorkshire and Humberside who expressed an opinion expected to earn £30 a month or less from £10,000 invested into a stockmarket based income plan. In fact the income available from the new Synergy Lifetime Income Plan is much higher and currently pays £35 income a month on an investment of £10,000.²
Regular monthly income: People dislike fluctuating income – almost nine out of ten (86%) people living in Yorkshire and Humberside who expressed an opinion would prefer to receive their income paid as a stable monthly payment, rather than one that changes month on month (14%). The new Synergy Lifetime Income Plan pays plan-holders a regular income each month, fixed for the first 12 months and at 12 month intervals thereafter.
Alan Hubbard, Chairman, Synergy Financial Products Limited, said:
People living in Yorkshire and Humberside are clearly after a good deal when it comes to paying for investments and expect lower charges than the average Brit.
After years of low interest rates the YouGov research shows that people want to receive a fair income from their investments paid to them as a regular fixed monthly income. The research also shows that people want really low cost investment products. I think many people would be shocked to find that the typical investment fund charges well over £100 a year in ongoing costs. That is why we have launched the Synergy Lifetime Income Plan. It pays investors a fair, monthly fixed income with ultra-low ongoing charges.
The Synergy Lifetime Income Plan provides people with a reliable regular income. The plan is currently paying an income of 4.2% p.a. subject to tax² to plan-holders as a regular income each month, fixed for the first 12 months. The plan invests into a portfolio of 20 shares, with strong dividend track records and future potential, selected from the FTSE100 index by Synergy’s investment committee.
The charges for the Synergy Lifetime Income Plan are low. The ongoing administration charge is just 0.25% of the initial investment in the first year; equivalent to £25 p.a. on an investment of £10,000. Initial dealing costs are £7.50 per share purchased, plus Stamp Duty Reserve Tax at 0.5% of the purchase value.
The Synergy Lifetime Income Plan is only available as a direct investment online:
¹ Source: The Investment Association: Typical fund charges and costs htt1://www.theinvestmentassociation.org/investment-industry-information/fund-charges-and-costs/
² Source: Synergy Financial Products Limited. Data calculated as at close of markets on 10th July 2015. Figure net of admin fees. Additional and higher rate tax payers will be liable for further tax on the dividends received by the plan. The exact level of income received will vary and depends on the dividend yield of the investment portfolio on the investment date. Income payments will be recalculated yearly and the income we pay will be based on the dividends received by the investment portfolio.