By Mohamed Ali Bernat AXA Sun Life is offering two pension options for the stakeholder regime, one w...
By Mohamed Ali Bernat
AXA Sun Life is offering two pension options for the stakeholder regime, one within the 1% cap and the other enhanced investment option aimed at the intermediary sales channel.
The company's new world pension range will include personal, group personal and group occupational pensions, as well as stakeholder-friendly pensions off-ering a maximum 1% annual charge. From April 2001, both individual and group stakeholder pensions will be added to the range. Clients opting for the no-frills, 1% stakeholder based product, Saver, will have a limited investment choice of the group's Secure Managed, Cautious Managed, Aggressive Managed and UK All Share Tracker funds.
The enhanced version, the AXA Investor Pension, will feature a wider investment choice and extra benefits, including lifestyle switching for retirement fund protection. There will be a maximum 1.5% annual management charge on the range of 24 AXA managed funds that are available under this scheme.
The Investor Pension will also include six externally managed funds, which feature a maximum annual management charge of 1.8%. The management charge is determined by the amount of commission taken by the adviser. AXA has yet to make a decision on whether a with-profits fund will be viable under current stakeholder legislation, which effectively requires a new fund to be set up.
Steve Burgess, pensions development manager AXA Sun Life, said: "Both the Saver and Investor design can meet stakeholder requirements but the investor design offers the added benefit of varying the annual management charge to reflect the level of advice given. For example, it will suit advisers with corporate customers who need advice and want to offer their employees access to advice."
AXA Sun Life will focus on e-business as the platform for delivering service in the 1% world of pensions.
The new pension range will be available through AXA's existing extranet site, www.ifaline.co.uk, which will provide financial advisers with online quotes and application forms as well as detailed information about AXA products.
Entry deadline: Friday 28 September 2018
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