Standard Life plans to launch an ‘executive wrap’ product on its platform for clients that have exceeded the lifetime allowance for tax-free pension saving.
The lifetime allowance is being cut from £1.5m to £1.25m from April.
Standard Life is preparing to roll out a “multi tax wrapper” later this year aimed at senior management who may be likely to breach the £1.25m limit. Pricing details will be announced in due course.
Speaking to Money Marketing, head of platform propositions David Tiller says: “We are developing an executive wrap proposition. With the lifetime allowance cap coming in we are aware executives in major firms, such as partners in accountancy and law firms, need to start looking at their retirement plans in a slightly different way.
“It is going to be a multi tax wrapper with different types of investment strategy. We are going to move away from a simple pension scheme based solution to one that is wrap-based. The employer can set it up on behalf of the boardroom on a collective price deal but with their own separate investment and tax wrapper strategies.”
Aurora Financial Planning chartered financial planner Aj Somal says: “The lifetime savings limit is unpredictable and could of course go back up, which could change the playing field again. Depending on details like pricing, this idea sounds like it could be competitive.”