Skandia is entering the section 32 buyout market for the first time as it anticipates huge demand ahead of A-Day.
The provider is adding an s32 plan to its single-priced pension range aimed at IFAs looking to ringfence tax-free cash and death benefits before the new pension tax regime comes in.
IFAs have welcomed Skandia's launch of a single-charged s32 plan in a market where many providers still offer pre-stakeholder contracts with bid/offer spreads.
Skandia says the product will benefit investors with death benefits and tax-free cash in excess of 25 per cent who do not want to lose out when the new rules come in.
Pension brand manager Billy Mackay says: “With future benefits after A-Day based on a personal pension-like structure, many trustees will need to consider the logic of retaining existing schemes that carry trustee duties and responsibilities. Skandia's s32 product will provide an ideal solution for ringfencing the accumulated benefits and funds.”
Millfield pension specialist Graham Duckett says: “This is an excellent move from Skandia. This market is wide open and has so few players at the moment. We are gearing up for a big push in this area before A-Day, when you will see a lot of deferred contracted-in and contractedout money-purchase arrangements wanting protection.”