Standard Life effectively pulled out of the personal pension market about five years ago when it launched its Sipp. It still has a product but it is not actively marketed and as such its market share has dropped to around 4 per cent.
But the firm believes there are lucrative opportunities to be had. The active money personal pension will launch in February alongside a hefty consumer marketing campaign. It will begin advertising in the trades this week.
The product is aimed at young and successful singles or families aged between 25 and 40 earning over £40,000 a year. The target market will also own their own home with a mortgage and are likely to have at least one child under the age of 15.
The firm says customers will be able to move seamlessly from the personal pension into the Sipp if they choose. The personal pension costs 0.5 per cent and offers more than 150 funds.
Standard Life is also keen to develop a specialist Sipp to compete more fiercely with the specialist Sipp providers. It plans to consult on what this would look like with IFAs although generally it would be targeted to high net worth business owners or professionals in their late 40s, 50s and older.
It will offer complete tax and estate planning services and use a range of professional services. The firm says it is also likely to offer a wider range of investments.
Head of communications Mark Polson says: “As we are coming up to five years since the launch of our Sipp, it seemed a good time to review our pension range generally. After speaking to advisers and customers, we have concluded that it is the right time to stretch our proposition both up and down market.
“The active money personal pension is a low-cost, easy to use plan that can trade up seamlessly to Sipp functionality as and when required. It has been developed with advisers and compliance officers to ensure it meets their needs.
“We never enter a market unless we think we can play a big part in it. It has been five years since we were in the PP space and we think the time is right to rejoin.”