Skanidia has redesigned its pension trustee bond as part of its Multipension range.
The pension trustee bond series five is aimed at trustees of self-invested personal pensions (Sipps), small self-administered schemes, (Ssas) and any occupational pension scheme where a pooled investment option is needed.
Like the other pension products in the range, the bond provides access to 222 funds from 26 different managers which include Aberdeen, SocGen, Schroder, HSBC and Skandia.
After a 10-year investment period, trustees can use Skandia's guaranteed pension fund, which is type of with-profits fund.
The bond allows trustees to encash the bond at any time, although if this happens during the first year of investment, a 0.6 charge is made. Flexibility is also ensured through unlimited fund switches, which are free of charge.
This makes the bond a useful tool in retirement planning. Sipps are becoming more popular with investors who want to have control over their pension investments and the pension trustee bond could prove attractive because of the vast range of funds it offers..
The Skandia trustee investment bond compares favourably to other products like National Mutual's pension investment bond because of the flexibilty of fund links. The National Mutual bond has no external fund links and although the first fund switch is free, a £12 charge is made thereafter. However, some trustees may feel that Skandia offers too many funds and may feel confused by them.