Low cost Sipps hailed by L&G

Low-cost group Sipps are being recognised as the company pension of choice by an increasing number of large organisations says Legal & General.

The provider says the product’s ability to link up with formerly non-pensionable items such as maturing share schemes are adding to the appeal of group Sipps. This month it revealed GlaxoSmithKline as an example of its new breed of larger customers using its Group Portfolio Plus Sipp product.

The provider says larger companies are tending to test the water by running a group Sipp alongside an existing plan, with a view to making a wholesale switch to the new arrangement further down the line.

Employers and their advisers can limit the fund range of the L&G product, which gives access to over 1,000 Oeics and unit trusts through Cofunds and also offers 11 lifestyle profiles for members. Protected rights are allowable within the product, which was launched last April.