Abbey National has launched a pre-stakeholder product, which also allows customers to stop and start...
Abbey National has launched a pre-stakeholder product, which also allows customers to stop and start payments without restrictions or penalty.
The Flexible Pension has no bid-offer spread or monthly administration fee, and has an annual management charge of 1% with an initial charge of between 2% and 5.
Members will also be able to alter monthly contributions if their circumstances should change. There is no minimum investment, although the group does recommend a basic investment of £40 gross a month.
The pension will be linked to a number of funds, giving members the choice between Unitised With Profits, Managed, UK Equity, Deposit and International. There is a five-year minimum term for investments into the unitised with-profits fund, including switches into the portfolio. Market value adjustments may also be applied to the with-profits fund. Other fund switches, either full or partial, are permitted with the first switch each year free and a £25 charge per switch thereafter.
Customers can transfer to any stakeholder pension arrangement, not just those run by Abbey National, once they are launched, without charge.
Every three months customers will be sent a statement summarising the progress of their plan to date and its projected benefits to their target pension income.
A new pension statement has been designed for the flexible pension to illustrate the customer's current pension position, which they will receive quarterly. This will be shown in relation to their chosen pension target. Customers will also be shown by graphs how increases to their contributions will affect their pension in retirement.
Contact any Abbey branch or call on 0800 302030.
Tapered annual allowance headache
Our weekly heads-up for advisers
Acquisition completed earlier this month.
Changes to take place by next year
Launched 18 November