PepDirect parent Torquil Clark is launching a radical flat-fee pensions dealing service that waives up-front commission fees.
PepDirect will deliver the service through its TQ Direct Choice arm.
For a flat fee of £50 plus VAT it will set up a pension with one of a panel of vetted providers without charging any initial commission.
The providers at present are CGU, Standard Life, Scottish Widows and Scottish Life.
Torquil Clark pensions development manager Tom McPhail says: "The high up-front charges associated with taking out personal pensions have adversely affected the eventual size of the pension pot and early transfer values.
"Because some companies charge up to 60 per cent of the first year's premiums the product provider is left with a debt attached to the plan which must recouped over the life of the policy."
TQ Direct Choice believe that it could turn the average 25-year plan with £200 monthly premiums assuming 9 per cent growth into £193,000.
The scheme will accept other providers if they meet certain criteria set by TQ Direct Choice. This will include financial strength, investment performance, charging structure and Year 2000 compliance.