GE Life has filled a gap within its product range with the simplified self-invested personal pension (Sipp).
This hybrid Sipp has no initial charge, but has an annual management charge of £100. It has lower charges and a limited investment range compared with the company's full Sipp.
The simplified Sipp provides access to 26 GE Life funds, which were formerly National Mutual pension funds. The funds are now externally managed on GE Life's behalf by fund management groups including Schroder, Goldman Sachs, JPMorgan Fleming and State Street.
Provided at least £100,000 is invested in GE Life's funds, investors can put the remainder of their money into any other Oeic, unit trust or investment trust. Investment in commercial property is not available.
This Sipp could be suitable for people who do not want to pay the higher charges of a full Sipp. However, the investment choice is limited compared with full Sipps that provide access to any asset class allowed for Sipp investment by the Inland Revenue.
Compared with Standard Life's self-invested personal pension, the GE Life Sipp has fewer fund links and is a simpler product. The Standard Life product has different options for charges and commission which vary, depending on the funds selected and whether income withdrawal is needed.
For example, there is a set-up fee of £60 and an annual charge of £100 for investment in the internal and external fund links and other collective funds where income withdrawal is required, but only an annual charge of £100 if no income withdrawal is needed. This may be confusing for some Sipp customers.