Fund manager Perpetual is making its first move on the pensions market next month with the launch of a personal pension.
The Personal Pension Plan, to be sold exclusively through IFAs, invests in a range of five funds.
These are Perpetual UK Equity, Perpetual Overseas Equity, Perpetual Global Equity, Perpetual Fixed Interest and Perpetual Cash.
The plan offers free contribution holidays, penalty free variations of contributions, free switching between funds, penalty-free early retirement and optional contribution protection.
It is also provides the options of a 'tailored structure' where the fund manager will select the funds to invest in dependent on the client's age and attitude to risk.
Perpetual says that the plan will offer a simple and transparent charging structure with no hidden penalties.
It set up a life company last year in preparation for the launch. This allows it to maximise tax efficiency.
Payment to IFAs will be on a level commission basis. Initial commission is 3 per cent with 0.5 per cent servicing commission. Perpetual will use its existing IFA team to market the product.
Perpetual pensions development director Fiach Maguire says: "Following the publication of their Green Paper on pensions, the Government challenged the industry to produce clear, fair and simple products. We are delivering just such a product."