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CU simplifies pension plans

Commercial Union has revamped its pension range with the launch of its Lifestyler and Optimiser plans.

CU says it has changed these plans to meet the changing lifestyles and demands of people today. It believes there is a need for a simple and flexible pension products.

The new plans offer two charging alternatives. The Lifestyler is designed to maximise early transfer values whist offering competitive maturity values making it suitable for people with unpredictable life styles and working arrangements.

The Optimiser plan is intended to provide higher maturity values as well as competitive transfer values, making it more suitable for clients in more stable working environments.

Commercial Union is offering these two options as it believes that there is a wide gulf between existing providers which either concentrate on high early transfer or high maturity values. With these plans, it is hoping to bridge this divide.

Overall, the charges appear very competitive with a 5 per cent bid/offer spread and level allocation throughout the term. However, its annual management charge appears to be average for the industry. The plans also benefit from reduced ongoing charges on paid-up values.

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