Skandia lowers charge on income plan

Personal pension

Skandia

Type: Single premium unit-linked plan

Description: Skandia has reduced the annual management charge on its single-priced income withdrawal pension product to 0.25 per cent for new investors, saving up to 0.5 per cent on previous rates.

Conditions: Offer applies to new investors transferring at least £100,000 into the Skandia Life single price personal income plan. The first payment must be received between 1 October 2008 and 30 April 2009. Transfer must be from other registered pension schemes agreed by Skandia. The minimum term is two years.

Contact: www.skandia.co.uk

Verdict: Historically Skandia has been able to command a premium due to the wrap-like nature and hence, flexibility of their product offering. However, with the advent of wrap accounts for pensions investments, Skandia's position is being challenged which perhaps explains the cut in management charges. IFAs will applaud this move especially under weak market conditions. The test would be whether Skandia will opt to throw an occasional offer to entice investors or switch to a permanent strategy of charging lower management fees.

Rating: Three stars out of five