Retirement adviser Intelligent Pensions has today launched a new fixed low-cost drawdown plan to allow DC scheme members to transition into flexi-access drawdown with ongoing advice.
The proposition is being positioned as a solution for the many schemes that are not planning to offer full flexibility from April, meaning members will need to transfer out to a drawdown plan to take advantage of the new rules.
The new Intelligent Pensions drawdown plan carries an annual charge of 0.75 per cent, matching the new charge cap coming into effect in April for default funds on auto enrolment schemes. The 0.75 per cent charge includes all the administration costs provided by James Hay, as well as the annual management charges on a wide range of investment funds.
Intelligent Pensions charges an implementation fee of 1 per cent for funds of £100,000 or more, the level it believes is the minimum suitable for pension drawdown, with no other set up costs.
Intelligent Pensions marketing director Andrew Pennie says: “We provide clarity and consistency with costs that match the new charge cap, irrespective of investment choice or number of transactions, providing employers, trustees and scheme members with huge confidence.”
Intelligent Pensions managing director Steve Patterson says: “Ongoing risk management is second only to initial suitability and anyone who thinks of drawdown as a DIY process is highly likely to come unstuck with potentially disastrous effects.
“’One size fits all’ solutions are no longer appropriate – everybody’s retirement will be different. To achieve the best possible retirement outcomes a far more personalised approach is needed.”