NPI is rolling out a regu lar-premium pension policy which it claims has the lowest annual management charge in the market at 0.15 per cent.
The move reflects NPI's belief that too many pension customers are penalised for taking premium holidays or making their policies paid up.
The life office claims that the average annual charge of 1 per cent is reducing funds by up to 95 per cent if investors stop contributions.
NPI is focusing on charges rather than the industry trend of introducing policies with high early transfer values.
The trend towards high early transfer values continues despite PIA persistency figures showing that only 1 per cent of consumers transfer in the first three years.
NPI's new contract has no penalties for stopping, reducing, increasing or suspending contributions. Investors can also make the policy paid up or take contribution holidays or early retirement without penalty.
NPI claims the pension will help IFAs compete against the direct-sales market and the bancassurers.
IFAs can choose to take no commission, boosting the allocation rate is 102.5 per cent. But IFAs can also take a flat rate of commission of up to 8 per cent, with the allocation rate reducing by one percentage point for each per cent of commission.
There is also an option to take full indemnity commission.
The plan has a £3 monthly policy fee and a 5 per cent bid/offer spread.
Head of IFA marketing Peter Byrne says: "We consider fund safety sacrosanct and, if you want to give value to customers, you have to reduce the annual management charge. This product will give IFAs the ammunition to show the value of advice."