Skandia is reconstructing and rebranding its entire pension range to compete with the stakeholder ma...
Skandia is reconstructing and rebranding its entire pension range to compete with the stakeholder market. Seventeen funds have been added to the pension range, which has been renamed MultiPension and which now comprises 222 funds from 28 managers.
Skandia intends to increase the number of funds to 300 and to cover a further six fund managers by the end of 2001. Current commission levels will be maintained under MultiPension, while the £2 maintenance charge will be removed.
The 0.6% early encashment charge on single premiums has also been removed with the exception of pension trustee bonds.
The price of the product will depend on the cost of advice and investment choice. At its cheapest, nil commission and invested in Skandia Cautious Managed fund, the reduction in yield cost is 0.8% a year for regular premiums and 0.6% a year for single premiums.
Peter Jordan, head of pensions marketing at Skandia, said that in the new pensions environment IFAs will need to prove genuine added value when recommending non-stakeholder products.
Investment Week first reported Skandia's intention last month.
60+ £300bn ISA savings
Total funds on list rise from 26 to 58
What made financial headlines over the weekend?
Q2 net sales dropped almost 50%