Clerical Medical has unveiled a standard 1 per cent annual management charge across its new Futureproof range of individual pension plans.
From the new year, the range will offer a 1 per cent charge on pre-stakeholderstyle personal pensions, free-standing additional voluntary contributions and executive pension plans. The move responds to market forces bringing all pre-retirement products under stakeholderstyle charges.
The products feature a £20 minimum contribution and will be based on a standard 100 per cent allocation rate and a single 1 per cent annual management charge.
The life office says Future proof provides advisers with a number of commission opt ions designed to meet their clients' specific needs. Fee-charging IFAs can offer their clients a reduced annual management charge of 0.6 per cent. The full stakeholder version of Futureproof will be available from April 2001.
Futureproof plans also include no charge for fund switching, no penalties on exiting, stopping or altering contributions plus life cover and waiver options.
Sales development manager (pensions) Martyn Neth ercott says: “Futureproof IPPs are designed to give IFAs maximum flexibility to meet their
own and their clients needs. Advice remains as important as ever, the flexible commission options available will provide IFAs with plenty of scope to cover the cost of advice.”