PHASED DRAWDOWN PLAN
Income drawdown plan
Lump sum £150,000
Choice of 41 unit-linked funds from GE Life and external managers, discretionary pension portfolio via Cazenove, Morgan Stanley Quilter, Rathbones and Tilney, simplified Sipp and Sipp options
Unit linked funds -annual 0.36%-1.65% depending on fund, discretionary pension portfolio - unit-linked charges apply plus self-invested option annual 1.2%-1.4% depending on fund manager and fund size, additional charges for investments above £500,000, simplified Sipp option - unit-linked charges apply plus annual £100, additional 0.2% a year if investment in self-invested element is less than £100,00, Sipp option - unit-linked charges apply, initial £290, annual £490, discounts available depending on fund size
Initial up to 6%, fund-based renewal up to 1% a year, Sipp and discretionary pension portfolio subject to negotiation
Tel: 0800 1691111
GE Life's phased drawdown plan is designed for people who need income but not a lump sum and who want to defer annuity purchase.
It has four investment options - a unit-linked investment option which provides access to 41 funds managed by GE Life and external fund managers, a discretionary pension portfolio option which provides tailored portfolios through links with Cazenove, Morgan Stanley Quilter, Rathbones and Tilney, a simplied Sipp and a full Sipp option.
After leafing through the product literature, there is nothing that Bates Investment Services pension technical supervisor Sophie Deal dislikes about the product. She says: “The wide range of funds and investment options make it easy to adapt the product to suit clients' requirements. Adviser remuneration is flexible and the literatre has excellent illustrations. The key features document makes it easy for advisers to explain to clients.”
When asked to consider which companies are likely to provide the main competition Deal says: “Other phased plans such as Winterthur Life's - particularly as it has an extremely flexible contract. But I generally consider GE Life to be one of the leading providers.”
Suitability to market: Good
Adviser remuneration: Good