This SIPP contains a flexible investment element, offering a choice of investment funds and a cash account, and a guaranteed element. Aimed at the estimated 60% of customers who qualify for an enhanced annuity due to ill-health or lifestyle choices, the ERA will provide customers with the benefits of these different products all in one tax-efficient wrapper.
Wrap platform IFDL (known to advisers through the Ascentric brand), has been chosen to manage the flexible aspects of the product and Vanguard Asset Management will provide the investment funds that customers will be able to access through the product.
Andrew Megson, Managing Director of Retirement, said:
“The introduction of the Pension Freedoms presented a challenge to the financial services industry and we feel that the launch of this product ushers in a new ERA for retirees. Providing people with the reassurance of a guaranteed income while allowing them to benefit from investment growth as well as flexible drawdown means that people have the best of ‘most worlds’.
“Unlike some other products, the Enhanced Retirement Account can grow and change with the customers’ requirements. While, someone may well wish to invest for growth in their sixties, they may be more comfortable with a higher guaranteed income in their eighties – this product offers people this option – supported by acknowledged experts in their respective fields.
“Having worked hard to understand consumers’ needs under the new regulations, we are extremely pleased to offer the Enhanced Retirement Account via independent financial advisers. Making choices at retirement can be complex and we hope that the ERA will provide intermediaries with a simple to explain product which truly meets their client’s needs.”
