Ascentric launch new pension plan

Ascentric, the independent wrap platform, has launched the ‘Ascentric Pension Account' (APA), a simple, low cost SIPP that provides IFA clients with the opportunity to consolidate their holdings into a single product offering flexibility, choice and transparency together with the ability to view and monitor performance online.

The APA is a direct result of IFA requests for such a product and will complement the 20 SIPPs already available on the Ascentric Wrap platform through its product partners.

The new plan is designed for IFA clients wanting to use the Ascentric Wrap, but not requiring the complexity or expense of a full SIPP. It is also for those who want to save for retirement within a tax efficient environment and for those over 50 (55 from 6 April 2010) who wish to take retirement income from all or part of their pension fund immediately.

Clients can transfer existing plans to the APA from any UK registered pension scheme, including Protected Rights and/or contracted out benefits, making it appropriate for clients looking to consolidate their pension plans.

Through the Ascentric Wrap, the APA offers an unparalleled range of investments allowing IFAs to tailor the product to the risk profile and retirement needs of their clients. This includes access to around 3,000 Unit Trust and OEICs as well as Specialist Funds, Managed Funds, Investment Trusts, Exchange Traded Funds (ETFs), Bonds, direct share holdings and cash where approved by HMRC for SIPP investment. The APA does not support the holding of property, unlisted shares or personal belongings (such as art, wine or antiques) as part of the investment portfolio.

Commenting on the launch of the APA, Hugo Thorman, Ascentric's Managing Director said, "We continually listen to IFA users of our Wrap platform to determine how Ascentric can best meet their needs through the products and services we offer. The APA offers the best of both worlds: a market-leading wrap platform with a simple, low cost SIPP. Sitting alongside our other product partners, IFAs now have more freedom to decide which product is most appropriate for their individual clients."

As well as the standard tax benefits provided by pension schemes, the APA also offers a number of income options including the ability to take income from the pension without buying an annuity (Unsecured Pension and Alternatively Secured Pension), taking benefits in stages (Phased Retirement), and flexibility for dependents following death.

In keeping with the Ascentric wrap proposition, charges are totally transparent and low at £150 set up charge, £150 per annum administration charge, in addition to the normal Ascentric dealing costs. Ascentric are also waiving the pension transfer charge (£50) for a 6 month period from launch.

Thorman concluded, "Simplicity is the key with this product and we expect it to be well received by IFAs."