View more on these topics

JLT unveils group Sipp but holds back on pricing

Jardine Lloyd Thompson has introduced a group self-invested personal pension and predicts that other major pension providers will follow suit.

The Sipp will be positioned alongside JLT’s occupational pension scheme and provide access to 1,500 funds through Fundsdirect. Employees will be able to invest in property and unlisted shares by activating the “true Sipp” option.

The scheme will be administered by Premier Pension Services, part of JLT Benefit Solutions, which says it now intends to focus on the group Sipp market.

Premier Pension Services says the scheme will not be priced until there is a clearer indication of take-up levels – a move which has been questioned by competing providers.

PPS head of Sipps Nigel Manley says the group Sipp will mainly be used by executives and high-earners wanting to invest non-pensionable assets such as bonus sacrifice while the occupational scheme will be used for the majority of staff for regular contributions.

The personal Sipp market has boomed since A-Day but commentators say group Sipps have failed to take off.

JLT Benefit Solutions managing director Duncan Howarth predicts this could be about to change. He says: “Group Sipps have been talked about for a long time but we are seeing little evidence that this attractive option is being used. As the shift to defined-contribution corporate arrangements continues, we expect to see more interest in and take-up of group Sipps.”

Scottish Life head of corporate business Mark Polson says: “This sounds like a proper group Sipp rather than a group personal pension with a Sipp bolted on, which more and more providers are launching. With many of these propositions, people who do not want the extra flexibility of the Sipp can end up paying more. But marketing something before pricing it is highly problematic.”

Recommended

FSA steps up crusade against rogue PPI providers

The Financial Services Authority will undertake further mystery shopping and thematic work in the payment protection insurance market.In what it is calling one of the largest programme of thematic work undertaken, it will aim to root out further abuses in a sector tarnished by a string of horror stories.The FSA has also promised enforcement action […]

No trust in HMRC’s knowledge

I was somewhat surprised to learn in last week’s Money Marketing that HM Revenue & Customs is looking to tax gifts to an absolute trust for minors as a chargeable lifetime transfer. This appears to misunderstand what an absolute or bare trust is all about. Trusts are used to create different interests in the same […]

Women take cover

Helen Pow says women’s protection premiums are higher than for men as the statistics show that females claim earlier but the increased rates are not putting off women from taking out insurance.

Skandia support tool for IFAs

Skandia is adding an Isa campaign support tool to its IFA platform, enabling advisers to produce tailored direct-mail campaigns with prepopulated application forms, covering letters and key features documents.

Boosting our annuity strategies

Targeting annuity purchase in lifestyle strategies isn’t anything new but we’ve just lifted the bonnet and injected an enhancement shot into the end-point of these solutions. The recent volatility has shot short-term volatility into equity markets and painted a very turbulent backdrop but we’re also equally faced with a stressed fixed interest environment. This can […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment