Skandia is rebranding and rebuilding its entire pension range to provide IFAs with an alternative to stakeholder.
The MultiPension range is aimed at being a direct competitor to stakeholder and replaces Skandia's current pension range.
The revamp includes the addition of 17 new funds to the multi-manager range, including Skandia's equivalent of a with-profits fund – the guaranteed pension fund.
There are a range of commission options for IFAs, including the introduction of a fund-based fee option of up to 1 per cent a year. Skandia says this allows IFAs providing ongoing portfolio management advice to charge additional fees.
The existing charging structure will be evolved to match stakeholder.
The £2 a month maintenance charge will be removed from the MultiPension. The 0.6 per cent early encashment charge on single premiums will also be removed.
The price of MultiPension depends on the cost of advice and investment choice. The cheapest option, is based on nil commission and will be invested in the Skandia Cautious Portfolio. It has a reduction in yield of 0.8 per cent a year on regular premiums and 0.6 per cent on single premiums.
Skandia says it has avoided the restrictions imposed by the 1 per cent charge cap and has designed a product where IFAs have more control over the mix of fund management costs and commission.
Head of pensions marketing Peter Jordan says: “In the new pension environment, IFAs will need to prove genuine added value when recommending non-stakeholder products.
“MultiPension is designed to provide a clearly differentiated alternative to stakeholder that allows IFAs to add real value to the pensions advice they give clients.”