View more on these topics

Standard Life replaces individual personal pension with flxxi plan

Standard Life has designed personal pension flex, an individual personal pension that replaces the company’s existing individual personal pension.

Personal pension flex is designed to offer more flexibility than the previous product in terms of contributions. The previous product enabled policyholders to make annual or monthly contributions, whereas the new product allows contributions to be made whenever the policyholder chooses.

The pension has a total of 31 fund links, which include 12 external funds from fund managers such as Fidelity, Threadneedle and Gartmore. If only internal funds are chosen, the basic 1 per cent charge will apply. This will be increased if external fund links are chosen.

The charges for external funds differ depending on the fund, but none will incur a charge beyond 0.5 per cent. Where IFAs are required to give extra advice on the selection of external funds, up to 0.3 per cent will be added.

Legal & General’s personal pension plan is a similar individual pension plan, but it is not as flexible as Standard Life’s offering since contributions can be paid monthly, annually or quarterly.

However, the Legal & General pension offers more funds than the Standard Life pension, including 16 external funds from fund managers including JP Morgan Fleming, Deutsche and Newton. An extra charge of up to 0.15 per cent is payable for each external fund link.

But Legal & General focuses on five fund managers, whereas Standard Life recognises that few fund managers excel in all areas and provides a greater choice of nine managers.

Recommended

To freeze or not to freeze?

I left my employer in March this year. I was a member of the final-salary scheme. I have now joined a new employer who does not allow new employees to join its final-salary scheme.What do you suggest I should do with my frozen pension from the first scheme? First of all, you will not have […]

Gartmore adds bond funds to Sicav

Gartmore has added two European bond funds to its Sicav, bringing the number of funds in the range up to eight.One of the funds, the Gartmore Sicav European corporate bond fund, focuses purely on investment-grade European corporate bonds. It will be benchmarked against the Merrill Lynch EMU corporate bond index.Richard Hodges, who has been a […]

Sum of the parts

This week sees the continuation of our investigation into the wonderful yet often unexplored world of offshore funds, especially offshore roll-up funds. You will recall, I hope, that this series was sparked off by the commencement of consultation on the taxation of offshore funds. Understanding how funds are taxed currently is essential to understanding how […]

Top rating for new stakeholder plans – Hargreaves Lansdown

Hargreaves Lansdown has come out largely in favour of the Sandler review, giving the various recommendations bet-ween one and three stars on its approval rating system.The new family of stakeholder products proposed by Sandler is given a top three star rating, with the IFA claiming to be a firm believer in stakeholder and the Cat-standard […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment