Just Group has teamed up with Novia to launch a guaranteed income proposition within a Sipp wrapper on Novia’s platform.
The guaranteed income solution is designed specifically for the platform, enabling an adviser to implement a flexible investment strategy within the Sipp.
The technology has been designed by Spire Platform Solutions and enables advisers using the Novia platform to provide a guaranteed income for life and invest the remainder of clients’ portfolios in more adventurous assets.
Both Novia and Just say this solution provides advisers and their clients with greater flexibility and convenience than traditional off-platform annuities.
The solution provides a personalised guaranteed income for life based on the client’s age, individual medical conditions and lifestyle factors, securing an “underpin” for clients’ retirement portfolios.
Using the guaranteed solution inside the Sipp enables the adviser to minimise income and inheritance tax liabilities on behalf of the client, the firms say.
A death benefit starting at 75 per cent of the initial investment is provided in the early years and paid as a lump sum into the client’s Sipp cash account, providing added security for investors’ dependants.
The solution also provides a cash-in value in the early years to meet a change in the client’s circumstances.
Novia chief executive Bill Vasilieff says: “Since the pension freedoms came into force in April 2015 there has been pressure on the industry from the government and the regulator to provide a truly innovative solution addressing the challenges of flexibility and security in retirement planning. There is demand from investors who want a degree of certainty, but do not want to purchase a more restrictive annuity.
“They are looking for new ways in which they can sustain a regular income. The technology and tools available in a platform Sipp mean that an investor can invest to provide a sustainable income as part of a complete retirement strategy and benefit from the transparency, flexibility and consolidation that investing via a platform provides.”
Vasilieff adds: “This is an innovative and exciting development in the retirement solutions space and we are thrilled to be offering the guaranteed income solution exclusively via the Novia platform.”
Just Group director Stephen Lowe says: “This is the first of a new style of product that aims to deliver three key components of retirement planning – the security of an income for life combined with flexibility and death benefits.
“There are two characteristics of the system that will benefit advisers and consumers. The first major is advisers can transact completely on the platform that makes life easy for advisers. The second interesting point is that should a client have a major event and they want to reverse the decision they can.”