Scottish Equitable International (SEI) this week launched a new offshore plan, which it claims could work as an alternative retirement savings tool for investors who will exceed the coming lifetime limit.
The Dublin-baed Flexible Investment Plan (FIP) is the first regular savings contract launched by the firm.
Main benefits are the plan’s flexibility, where clients can make either regular or one-off contributions or withdrawals at any time, and its tax efficiency, SEI says.
SEI believes the FIP targets five potential markets -including people who will hit the £1.5m lifetime allowance on pension contributions and are looking for a tax-efficient way of saving when when new legislation takes effect in April 2006.
People working abroad or planning to retire outside the UK could benefit from a more flexible long-term savings vehicle, SEI says.
And, employers who wish to ‘top-up’ pension arrangements of key employees, but are unable to do so because of restrictions such as the price cap, could also look to the FIP, SEI suggests.
Steven Whalley, SEI head of marketing, says: “The Flexible Investment Plan offers a fresh retirement planning solution for a number of types of clients. It’s ideal for high earners requiring a pension top-up, or for those with an irregular income stream who need a bit more flexibility alongside their pension.
“We are encouraging IFAs to adopt a new way of thinking about retirement planning."
Minimum regular contributions are set at £500 per month, with charges of 1.25% plus any IFA commission.IFAonline
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First mentioned in Cridland Report
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