The Sipp will give investors access to Cofunds’ platform, with a choice of fee options depending on the range of investment options required.
There will be no set up or administration costs until December 31, 2008.
Pru will still offer its full Sipp option, giving a broader range of investment choice including commercial property, discretionary asset management and online share dealing through Stocktrade.
Head of individual pensions Julie Mulvanny says: “One of the real benefits of Prudential’s Sipp option is that it is available through both the personal pension and income drawdown elements of our flexible retirement plan. Clients want simplicity of product and charges, and the ability to manage their retirement plans in one place. By offering this new more affordable Sipp option, customers simply pay for the investments they need and use – not all of them want access to a full Sipp at the outset. It is possible to move from the FundSipp to the full Sipp and we will automatically adjust our fees.”