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Standard makes WP default on stakeholder

Standard Life has unveiled details of its stakeholder package which uses its with-profits fund as the default option.

Standard is among the first band of life offices which have selected with-profits as the default despite the requirement for providers to ring-fence the funds for accounting purposes.

Its product has a flexible commission package with level and fund-based options. It also has a commission accelerator facility which is designed as an alternative to the Lautro basis of commission on stakeholder plans.

In effect, this gives IFAs an advance on fund-based commission, paying them five times the level of commission due at year 10 of the policy.

Standard says it has been making changes over the past year in preparation for stakeholder with the aim of making the buying and running of scheme simpler.

Its product also offers a 0.2 per cent reduction in annual management charges for funds up to £25,000, a 0.3 per cent reduction for funds between £25,000 and £50,000 and a 0.4 per cent reduction for fund in excess of £50,000.

UK operations chief executive Jim Stretton says: “We expect the pension market to grow significantly over the next few years. Customer service, value for money products and a proven track record are important when seeking a pension provider and, with the addition of our with-profits fund, our stakeholder pension will lead the way in this new low-cost environment.”

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