New Standard Life Personal Pension - Warning

engagedandopen

Just to let everyone know, the new Phoenix "Standard Life" d2c pension is advertised as having a default fund cost of 0.55% including 0.4% platform fee and 0.15% ocf.  I set up one, and it's reporting a charge of 1.639%, and you have to call them to make any changes to your investments - they don't put that in their key features.

They really need to sort this new product out.

dunstonh

This is pretty much Phoenix's first new business investment product.   So, you shouldn't expect much really.   Building a product and taking it to market is an expensive business and I suspect they will see how it goes before they decide to spend more.   

They bought the brand for new business, so they will probably give it a fair go but its not priced as an attractive option for those that know about pensions but it is inline with a robo.

 is advertised as having a default fund cost of 0.55% including 0.4% platform fee and 0.15% ocf.  I set up one, and it's reporting a charge of 1.639%, and you have to call them to make any changes to your investments - they don't put that in their key features.

It does give the full charges for its main options.
https://library.standardlife.co.uk/pp5ab.pdf






So, their main options are all 0.55% or fractionally lower.

I doubt many people would buy that pension if they intend to self select.   Its more robo style with a bolt on.

engagedandopen

It's Future Advantage 5 that I selected, though; should be 0.55%.  It says total charge 1.639%, platform charge 0% and fund charge 0.08% + 0.019%.

I have their AMPP for their MM V fund but I only intend to have 5% of my DC pension portfolio in MM funds due to the cost, ditto UK shares and specialist funds.  ITs I might push 10%, leaving 25% in lower-cost active funds like BNY through Aegon and 50% in mainly passive funds.

I'm really with SL and L&G PP in case I decide to buy an annuity from one of them, so I can keep in touch with what they're like as a business, though I'd probably ask an IFA to arrange it; it'd simplify things in accumulation otherwise to transfer out.  Drawdown through Aegon ARC would be expensive, but accumulation is cheap.

Albermarle

dunstonh said:

This is pretty much Phoenix's first new business investment product.   So, you shouldn't expect much really.   Building a product and taking it to market is an expensive business and I suspect they will see how it goes before they decide to spend more.   

They bought the brand for new business, so they will probably give it a fair go but its not priced as an attractive option for those that know about pensions but it is inline with a robo.

 is advertised as having a default fund cost of 0.55% including 0.4% platform fee and 0.15% ocf.  I set up one, and it's reporting a charge of 1.639%, and you have to call them to make any changes to your investments - they don't put that in their key features.

It does give the full charges for its main options.
https://library.standardlife.co.uk/pp5ab.pdf






So, their main options are all 0.55% or fractionally lower.

I doubt many people would buy that pension if they intend to self select.   Its more robo style with a bolt on.

SL/Phoenix never actually stopped offering new personal retail pensions, even after the takeover.
It was branded 'Active Money Personal Pension' ( or something like that) as it had been before the takeover. There was a handful of ready made investments, and a choice of about 200 OEIC funds if you wanted to DIY.
Charging was typically 1% all in, minus discounts ( some quite large ) .
At the same time they had three tiers of SIPP, the lowest tier was very similar to the personal pension, so not actually a SIPP at all. However it had a more SIPP like charging structure. It looks like the 'new' product is based on this, although some of the funds are relatively new as well. 
So it would seem not be a product built from scratch.

Albermarle

engagedandopen said:

Just to let everyone know, the new Phoenix "Standard Life" d2c pension is advertised as having a default fund cost of 0.55% including 0.4% platform fee and 0.15% ocf.  I set up one, and it's reporting a charge of 1.639%, and you have to call them to make any changes to your investments - they don't put that in their key features.

They really need to sort this new product out.

I can only think the 1.639% is some sort of admin error. You need to give them a call and/or send them a message.

I have an older SL pension and it is no problem to switch funds online.
However I remember in the past when I wanted to switch where new contributions would go, I had to call them.
Maybe that is what they mean ?

engagedandopen

I already told them on the phone yesterday.  The outcome was that they then checked with a colleague and then informed me all my plans are charged at 1%, which is demonstrably incorrect for the AMPP and the new Phoenix PP.

But I don't appreciate condescension and so I have flagged the previous comment to the moderators.