Scottish Widows has introduced a pre-stakeholder individual personal pension, Individual pension solutions, as a sister product to its pre-stakeholder group personal pension.
Individual pensions solutions has a minimum term of five years and invests in a range of 22 funds. Seven of these are managed externally by Perpetual, Fleming, Gartmore, Fidelity, Schroders, Mercury and Newton.
The product has a flexible charging and commission structure compared to some pre-stakeholder pensions. It has an annual management charge ranging from 0.65 to 1 per cent, which allows IFAs to tailor the charges to the level of advice they give to their clients. Fund switches are free and contributions can be stopped, started or changed at any time.
These features mean the product is very flexible compared to some other products. However, the minimum term of five years is an aspect which is not so good, as some products do not have a minimum term.
There are 11 pre-stakeholder pensions already on the market and this product does not seem to be doing anything radically different from the rest of the crowd.