HSBC has launched its workplace retirement services proposition and is setting a target to become a leading player in the UK group pension market in the next five years.
The service will provide a group personal and group stakeholder pension, with access to a range of funds. The company has invested in a new investment-only platform which is aimed at trust-based defined-contribution schemes.
Fund Platform, developed with FNZ, will offer straightthrough processing, open architecture and access to HSBC’s target-date protected retire-ment funds.
HSBC says its key distribution channel will be employee benefits consultants and corporate IFAs.
It is offering commission on GPPs, group stakeholders and an s32a buyout plan.
It will also offer auto-enrolment-compliant options to its 1.2 million business banking customers directly.
HSBC’s charges will not be the cheapest but the bank claims that they will be good value, given its economies of scale.
The bank is offering defined-contribution group pensions and has not yet made any decision on whether to offer group Isas, saying it wants to do further research into demand for that and other corporate wrap-style features before bringing a proposition to market.
Workplace retirement services head Rob Pearce says: “With substantial regulatory changes on the horizon for retirement saving in the workplace, HSBC, in partnership with intermediaries, aims to play a major role in preparing employees for their future retirement.
“We understand that many of our clients see the administration of a pension scheme as more of a burden than the contributions they make. By keeping things simple and with effective administration, we will keep our promises.”