Momentum Pensions has updated its product range in response to demand from clients with minimum funds of £20,000.
The international pension specialist and independent trustee is launching the Qrops Superlite and Sipp Lite schemes, building on its existing qualifying recognised overseas pension and self-invested personal pension product range.
Investments can be made through the Brooks MacDonald International Platform using the international managed portfolio service, which offers six risk-rated discretionary fund managed portfolios.
Covering four jurisdictions - UK, Malta, Gibraltar and the Isle of Man - the new options offer minimum transfer values of £20,000 (up to £39,999), with a £250 set up fee and £250 annual fee.
Momentum Pensions group’s chairman Mark Gaywood said: “Following strong demand from intermediaries, we are pleased to widen our product range to include versions of both our Qrops and Sipp products, which are cost effective for lower fund sizes.
“Thousands of people in the UK and expatriates retire abroad every year and having an international pension solution that offers easy accessibility is crucial to enjoying retirement.
“As the pension landscape evolves, we remain optimistic in meeting all and any upcoming changes, and remain focused on developing our product offering,” he added.
Last year, the group entered the small self-administered scheme market and boosted its holdings in the Sipp business to 80 per cent.
Claire Trott, head of pensions technical at Sipp provider Talbot and Muir, commented that low cost options for clients who want restricted investment is not something new to the market.
“We have operated a similar product with a choice of a single DFM from a list, including Brooks Macdonald for over two years now and it is very popular, although the average fund size is still in excess of £200,000.
“This fund size may reduce over time as people become used to the pensions freedoms and plan to invest for longer into their retirement,” she said, noting that the firm does not charge to establish the Sipp and annual fees are £250 + VAT.
“We have seen an increased amount of interest in transfers back to our Sipps from those who have previously transferred out to a Qrops, because of the lack of benefit with regards to retirement options following the pensions freedoms. However they will still have a place for those truly retiring abroad and a low cost option in this market will be welcomed by them.”
peter.walker@ft.com
