Greg Koiston, financial adviser, Aspect8
We started using the One Retirement Sipp in January. It has just been launched but Aegon gave us a lot of help and training on how to use it.
I was attracted to the simplicity of the contract and it is very easy to use. A lot of clients are looking for simplicity.
I will be using it for both flexible and capped drawdown clients, pension transfers and switches. This is not suitable for clients looking for direct property investment, but I will be talking about it with a lot of my existing clients when I review their pension arrangements.
A lot of my clients are in group pension schemes, paying a 1% annual charge for only a £30,000 pot, while the One Retirement Sipp has a 0.35% annual basic charge, which drops to 0.3% for assets of more than £100,000.
Those people want advice without having to pay a large fee on top, so potentially there are group pension scheme members receiving no advice, invested in a managed fund when they could be in a simple Sipp. If they are switched into the One Retirement Sipp they can have a passive or actively managed fund.
I have three clients in the Sipp at the moment with around £180,000 each. Using it is part of the changes to our service proposition for the retail distribution review. We have to make sure everyone receives some sort of service, which includes reviewing their pension arrangements. I expect three or four new or existing clients will start using this Sipp each month.