Legal and General has today launched a new pension product, called the Portfolio Plus Pension it is designed for customers who want to spread their investment in a large number of funds.
Over 40 fund managers are responsible for around 300 different funds, with customers pension payments being spread between up to 100 of them. Both Legal and General themselves plus independent financial advisors are promoting the new Portfolio Plus Pension, giving customers plenty of choice regarding access to it.
A Legal and General spokesman said that this particular pension option would be ideal for those customers who would like the flexibility inherent in a self invested personal pension.
The Prudential is heading back to the pensions buy out environment with a deal worth around GBP350 million to pick up some of the Rank pension scheme.
The deal is expected to be confirmed next week when the interim results of the Prudential will be announced. Under the terms of the agreement the Prudential will take on the duty of paying the pensions of existing recipients of pensions through Rank.
There are around 10,000 people currently on the books,all of whom will in future receive their pension payments from the Prudential. This is a market that they used to be strong in but moved away from a couple of years ago to focus on their core business.
According to the Prudential retired people have substantial assets and savings although they are not maximising them to aid their standard of living.
On average retired couples have almost GBP270,000 in assets and savings whilst single pensioners have half this amount. However, even though they have these large funds at their disposal, less than 20 percent of them have sought professional financial advice. A Prudential representative was amazed at these findings, feeling that pensioners were missing out on perhaps thousand of pounds extra by better using their money.
Even ignoring the value that people have in their homes a retired couple still has around GBP135,000 in accessible funds. This money should be made to work harder said the man from the Prudential and deliver a better standard of living.
