Nutmeg’s entrance into the pensions market is to begin in early 2015 with the launch of a personal pension administered by Hornbuckle.
The direct-to-consumer online discretionary manager first revealed its plans for a personal pension in the summer. Hornbuckle will provide the pension trustee and pension administration services to Nutmeg, using technology developed by FNZ.
Nutmeg will unveil the costs and charges associated with the product early next year.
Nutmeg chief executive Nick Hungerford says: “Hornbuckle have proved themselves an excellent match for us. They share our vision for developing investment and pension services that are refreshingly intuitive, accessible and that give our customers excellent value, and we are now working together to deliver a pension service that is in keeping with that Nutmeg philosophy.
“This year we have carried out extensive research to understand what our customers want from a pension service and the Nutmeg Personal Pension will deliver exactly to their wishes. It will be easy to use, flexible and intelligently managed, all for one simple, low annual fee.”
Hornbuckle chief executive Phil Smith told Money Marketing: “Our primary market will remain the advice channel and the service that we refine and use for our digital partners will be brought into that channel and they will effectively have the best of both worlds.
”It’s not us saying we want to be Hargreaves Lansdown, equally we’re not trying to become a platform provider. We are a retirement solutions provider and that’s what we will remain but over time we will morph into a multi-channel retirement solutions provider.”
He adds the business’s move into the D2C world was not as a result of the Budget pension reforms that introduce new flexibilities and access to pension savings.
He says: “The journey will start much more about accumulation and saving for retirement but over time it will become as much about how people access and drive value through drawdown – but the new legislation is not the driver of this project, it was going to happen anyway.”