He argues that there is no longevity in the products because the rules surrounding alternatively secured pensions are likely to be reversed, making scheme pensions redundant.
He says: “Scheme pension and Sipps do not really sit comfortably with each other. We would rather try and persuade the Government to change the ASP rules than start trying to put a square peg in a round hole which is a scheme pension on top of a Sipp.”
Hornbuckle Mitchell was the first to launch an individual scheme pension option in its Sipp last year and Rowanmoor Pensions and Axa have recently followed it into this market.
Rowanmoor Pensions marketing manager Anna Hopkinson says: “Scheme pension is just one option. For certain clients, particularly those who have reached age 75, scheme pensions offer the chance to have income payments based on their circumstances rather than the one-size-fits-all assumption set by the Government Actuary’s Department for USP and ASP.”