Today, Phoenix Group announces the introduction of in-scheme drawdown to its DC Master Trust pension scheme proposition for clients of Standard Life Assurance Limited. The launch will allow scheme members to access their pension savings from within their scheme, and includes new investment options built on the principles of the investment pathways architecture that is due to be introduced for contract based pension schemes next year.
Phoenix Group, a leading savings and retirement business, has made its growth ambitions in the workplace pension market clear and is supporting the development roadmap for Standard Life Assurance’s workplace pension proposition in 2020 and beyond. More than 150 experts from different teams across Phoenix Group, all of whom have been operating from home during the Covid-19 pandemic, have worked to deliver today’s proposition enhancement in direct response to feedback from scheme members, clients and their advisers.
Commenting, Jenny Holt, Proposition Director, Phoenix Group said:
“By introducing in-scheme drawdown to the Standard Life DC Master Trust pension scheme proposition, we’re making it simple and easy for pension scheme members to remain within their scheme while accessing their pension savings. We know that it is important to support members with their decision making when accessing their pension savings, which is why we were keen to embrace the principles of the investment pathways architecture and have included new guided digital journeys to support scheme members. We’re delighted to be delivering this enhancement, particularly at this time. Given the challenges that everyone has faced in light of Covid-19, this has been a huge effort and my colleagues should be proud of their achievements.”
Key features of the new in-scheme drawdown proposition
- Available for Standard Life DC Master Trust pension clients and their scheme members
- No minimum eligibility limit
- Members remain part of their employer’s scheme and will retain any scheme discounts when they choose in-scheme drawdown
- No additional charges for accessing in scheme drawdown
- Clear and simple investment options, with four clear pathways to help members make informed decisions
- Members continue to benefit from existing support online, with new guided digital journeys, and further support over the phone if required, as well as through retirement events
- Supported by educational content for all members
The new investment pathways will cater for scheme members who would like help in making their investment decision and will offer four ready-made investment options based on what a scheme member plans to do with their drawdown pot (see Figure 1 below with more detail on the funds in the notes to editors).
Figure 1: Four core investment pathways
In 2019 Phoenix Group also announced an enlarged partnership with leading technology and service provider TCS which will create a single, open architecture, digital operating platform that will be both agile and scalable. This will accelerate the speed to market to meet the future needs of workplace advisers, employers and scheme members.
Working with TCS, Standard Life Assurance Limited will shortly start to introduce enhanced analytics for workplace clients. This will provide schemes with much richer insight, enabling them to segment their membership base and take more targeted action with their scheme members, to help them achieve better outcomes. The enhanced analytics will gradually be made available to clients from September onwards.
Jenny Holt adds: “We’ve laid out a clear roadmap for our workplace pension proposition and we’re committed to supporting our clients and to continuing to grow our presence in the Master Trust market. We’re looking forward to sharing news of future developments.”
-Ends-
Enquiries
Nicki Lundy
Head of Media Relations
Phoenix Group
0131 245 2737 or 07515 298302
Nicki.lundy@thephoenixgroup.com
Leonie Garfield
Lansons
07530 626 212
leonieg@lansons.com
Notes to editors
About our new investment pathways for in scheme drawdown
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Standard Life Investment Pathway Option 1 Fund For people who have decided not access their money in retirement in the next 5 years. |
This Fund aims to provide a balance between growth and risk. The Fund will do this by holding a range of different funds which invest in a variety of assets from around the world, such as equities (shares), bonds (loans to a government or company) and property. The Fund may use a mix of investment styles and strategies such as active and passive management. This will be regularly reviewed and may change over time without notice, unless the change is significant. Please see the fund factsheets for more details The value of investments within the Fund can go down as well as up and isn’t guaranteed - you may get back less than was paid in. This Fund is intended to be run as efficiently as possible so may use derivatives to help reduce risk or to meet its investment objective if this is permitted and appropriate. The sterling value of overseas assets held in the Fund may go up and down because of changes in exchange rates. |
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Standard Life Investment Pathway Option 2 Fund For people who plan to set up a guaranteed income (annuity) in the next 5 years |
Buying an annuity is a way of turning your pension savings into a regular income that will continue for the rest of your life. The cost of buying an annuity can go up and down, potentially significantly, which impacts the income you will receive in retirement. The Fund aims to lessen the impact of changes in annuity rates (which are impacted broadly by changes in interest rates) by holding a range of different funds which invest in long duration bonds (loans to a government or company), whose value is also broadly impacted by changes in interest rates, but in the opposite direction. So if annuity rates fall, the value of this fund will typically increase, and vice versa, providing an offsetting effect. The Fund may use a mix of investment styles and strategies such as active and passive management. This will be regularly reviewed and may change over time without notice, unless the change is significant. Please see the fund factsheets for more details. The value of investments within the Fund can go down as well as up and isn’t guaranteed - you may get back less than was paid in. This Fund is intended to be run as efficiently as possible so may use derivatives to help reduce risk or to meet its investment objective if this is permitted and appropriate. The sterling value of overseas assets held in the Fund may go up and down because of changes in exchange rates. |
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Standard Life Investment Pathway Option 3 Fund For people who plan to start taking their money as a long-term income within the next 5 years. |
This Fund aims to provide a balance between growth and risk. The Fund will do this by holding a range of different funds which invests in a variety of assets from around the world, such as equities (shares), bonds (loans to a government or company) and property. The Fund may use a mix of investment styles and strategies such as active and passive management. This will be regularly reviewed and may change over time without notice, unless the change is significant. Please see the fund factsheets for more details. The value of investments within the Fund can go down as well as up and isn’t guaranteed - you may get back less than was paid in. This Fund is intended to be run as efficiently as possible so may use derivatives to help reduce risk or to meet its investment objective if this is permitted and appropriate. The sterling value of overseas assets held in the Fund may go up and down because of changes in exchange rates. |
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Standard Life Investment Pathway Option 4 Fund For people who plan to take all of their money in the next 5 years. |
This Fund aims to provide a relatively stable investment for short-term periods. The Fund will do this by holding a range of different funds which invests in a variety of assets from around the world such as bonds (loans to a government or company) and money markets instruments. The Fund may use a mix of investment styles and strategies such as active and passive management. This will be regularly reviewed, and may change over time without notice unless the change is significant. Please see the fund factsheets for more details. The value of investments within the Fund can go down as well as up and isn’t guaranteed - you may get back less than was paid in. This Fund is intended to be run as efficiently as possible so may use derivatives to help reduce risk or to meet its investment objective if this is permitted and appropriate. The sterling value of overseas assets held in the Fund may go up and down because of changes in exchange rates. |