| Customer profile | Investment choice | Rewarding your clients | How to pay for advice | Your reward |
Flexible Pension Plan
Your clients are unique. Now, thanks to our Flexible Pension Plan, their pension can be too. This interactive tool will let you see the type of client it's most suitable for - and give you an insight into the extensive range of options on offer.
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Customer profile
1.  Mass Market |
2.  Aspirational |
3.  Affluent |
4.  High net worth |
Mass Market
| Free assets: | up to £29,999 | This segment accounted for approximately 40.8 million (86%) of the adult working population in 2006 but only 6.4% of the total share of UK free assets. |
|---|---|---|
| Age: | 25-34 | |
| Dependents: | young family | |
| Savings: | short-term savings | |
| Financial advice: | general financial planning advice |
1.  Mass Market |
2.  Aspirational |
3. Affluent |
4. High net worth |
Aspirational
| Free assets: | up to £30,000-£99,999 | In 2006, this segment accounted for only 3.3 million (6.9%) of the adult working population but 8.4% of the total share of UK free assets. |
|---|---|---|
| Age: | 35-44 | |
| Dependents: | family | |
| Savings: | event-oriented | |
| Financial advice: | general investment planning |
| 1. Mass Market |
2. Aspirational |
3.  Affluent |
4. High net worth |
Affluent
| Free assets: | up to £100,000-£249,999 | In 2006, this segment accounted for only 1.8 million (3.8%) of the adult working population but 14.6% of the total share of UK free assets. |
|---|---|---|
| Age: | 45-54 | |
| Dependents: | empty nesters | |
| Savings: | retirement planning, downsizing, inheritance tax, health | |
| Financial advice: | detailed financial planning and relatively complex investments |
| 1. Mass Market |
2. Aspirational |
3. Affluent |
4.  High net worth |
High net worth
| Free assets: | more than £250,000 | In 2006, this segment accounted for only 1.6 million (3.2%) of the adult working population but a massive 70.7% of the total share of UK free assets. |
|---|---|---|
| Age: | 55-64 | |
| Dependents: | empty nesters | |
| Savings: | maintaining their standard of living | |
| Financial advice: | detailed financial planning and relatively complex investments |
|
Investment choice
| Insured funds | Self-invested - Fund Supermarket | Self-invested - discretionary fund managers (DFMs) | Self-invested - other 'alternative' investments |
Insured Funds
Over 130 risk-related funds from 19 investment partners.
| Insured funds | Self-invested - Fund Supermarket | Self-invested - discretionary fund managers (DFMs) | Self-invested - other 'alternative' investments |
Self-invested - Fund Supermarket
Over 1,400 funds from more than 65 market-leading fund managers at specially negotiated prices
| Insured funds | Self-invested - Fund Supermarket | Self-invested - discretionary fund managers (DFMs) | Self-invested - other 'alternative' investments |
Self-invested - discretionary fund managers (DFMs)
Why not consider using a DFM? Making the initial decision on which type of investments to use for your clients, monitoring these and looking after all the administration can be costly and time consuming - but a DFM deals with all of this so you don't have to.
| Insured funds | Self-invested - Fund Supermarket | Self-invested - discretionary fund managers (DFMs) | Self-invested - other 'alternative' investments |
Self-invested - other 'alternative' investments
Your clients can invest:
- direct in the stock market
- in 'alternative' investments such as hotel rooms and commercial property, as well as many other allowable investments
|
Rewarding your Clients
| Fund Bonus | Fund Value Rebate |
Fund Bonus
If you choose the establishment charge option to pay for your advice, your clients will benefit from a fund bonus of up to 4% after 10 years. They'll also have the opportunity to get a 0.5% bonus each year after that.
Even if we haven't received all contributions, your clients may still be eligible for a proportion of the 4% bonus. Any additional increases in regular and single contributions, and transfers will each receive a separate fund bonus and their own fund bonus term.
| Effective number or original contributions paid (whole years) | % of bonus payable | When is the bonus paid? |
|---|---|---|
| 10 years | 4% | At the end of year 10 |
| 9 years | 3% | The end of year 10 or the point of exit if earlier |
| 8 years | 2% | |
| 7 years | 1% | |
| < 7 years | 0% |
| Fund Bonus | Fund Value Rebate |
Fund Value Rebate
If you choose the financial adviser charge or additional annual management charge options to pay for your advice, your clients will benefit from a tiered fund value rebate (FVR).
Each month, we'll calculate the total value of all contributions to the plan. If the total fund value is £20,000 or more we'll add additional units to the plan.
| Fund value | FVR |
|---|---|
| £20,0000 - £249,999.99 | 0.50% |
| £250,000+ | 0.60% |
|
How to pay for Advice
| Establishment Charge | Financial adviser charge | Additional annual management charge (AMC) | Fee basis |
Establishment Charge
Taken as a percentage of the fund value monthly over a five-year period.
What's best here?
- Regular contributions
Why?
- At year 10, your clients will benefit from a fund bonus based on their original contribution.
- They can also receive a further bonus each year after that.
| Establishment Charge | Financial adviser charge | Additional annual management charge (AMC) | Fee basis |
Financial Adviser Charge
Taken as a percentage of the contribution paid and it's deducted from the fund during a 12-month period.
To make regular contributions, your clients must have made at least one single contribution or transfer value to their plan.
What's best here?
- Single contributions
Why?
- Your clients will get a fund value rebate right from the start.
| Establishment Charge | Financial adviser charge | Additional annual management charge (AMC) | Fee basis |
Additional annual management charge (AMC)
The base value is 1%. You can choose to apply an additional AMC to pay for some or all of your commission. Any fund manager charges (if they apply) are in addition to this charge.
To make regular contributions, your clients must have made at least one single contribution or transfer value to their plan.
What's best here?
- Single contributions
Why?
- Your clients will benefit from a fund value rebate right from the start.
| Establishment Charge | Financial adviser charge | Additional annual management charge (AMC) | Fee basis |
Fee basis
Under the menu structure, we start with a basic charging platform that assumes we don't pay any commission.
What's best here?
- Any contribution type
Why?
- It lets you offer the product to your clients on a fee basis.
|
Rewarding you for the work you put in
| Initial commission (IC) only | Initial commission (IC) and renewal commission (RC) | Initial commission (IC) and implicit fund-related commission (IFRC) | Implicit fund-related commission (IFRC) |
Initial commission (IC) only
| Establishment charge | Financial adviser charge | Additional annual management charge | |||
|---|---|---|---|---|---|
| Regular Up to 115% x Lautro IC |
Single Up to 8% IC (8.5% IC if SC / TV is > £50,000) |
Regular Up to 50% IC |
Single Up to 8.5% IC |
Regular Up to 10% IC |
Single Up to 7% IC |
| Initial commission (IC) only | Initial commission (IC) and renewal commission (RC) | Initial commission (IC) and implicit fund-related commission (IFRC) | Implicit fund-related commission (IFRC) |
Initial commission (IC) and renewal commission (RC)
| Establishment charge | Financial adviser charge | Additional annual management charge | |||
|---|---|---|---|---|---|
| Regular Up to 100% x Lautro IC and 2.5% RC |
Single n/a |
Regular Up to 45% IC and 2.5% RC |
Single n/a |
Regular Up to 5% IC and 2.5% RC |
Single n/a |
| Initial commission (IC) only | Initial commission (IC) and renewal commission (RC) | Initial commission (IC) and implicit fund-related commission (IFRC) | Implicit fund-related commission (IFRC) |
Initial commission (IC) and implicit fund-related commission (IFRC)
| Establishment charge | Financial adviser charge | Additional annual management charge | |||
|---|---|---|---|---|---|
| Regular Up to 90% x Lautro IC and 0.1% IFRC |
Single Up to 7% IC and 0.1% IFRC |
Regular Up to 50% IC (IFRC can only be funded by additional AMC.) |
Single Up to 8.5% IC (IFRC can only be funded by additional AMC.) |
Regular Up to 8% IC and 0.1% IFRC |
Single Up to 5.6% IC and 0.1% IFRC |
| Initial commission (IC) only | Initial commission (IC) and renewal commission (RC) | Initial commission (IC) and implicit fund-related commission (IFRC) | Implicit fund-related commission (IFRC) |
Implicit fund-related commission (IFRC)
| Establishment charge | Financial adviser charge | Additional annual management charge | |||
|---|---|---|---|---|---|
| Regular Up to 0.35% IFRC |
Single Up to 0.6% IFRC |
Regular IFRC can only be funded by additional AMC |
Single IFRC can only be funded by additional AMC |
Up to 0.5% IFRC | Single Up to 0.5% IFRC |
Why transfer to our FPP? - NEW
The main reasons that people transfer their pensions are a desire for better investment performance or the wish to have all their pension eggs in one basket. And consolidating them in our FPP could make real financial sense. Read more about the benefits of transferring to our FPP.
Commission and charges
The options available to you
With so much choice, your expertise will be relied upon even more. So, to reflect this high level of advice and service, we've developed a menu of commission and charging options that lets you choose the most suitable one for each client. It's just reward for the work you'll put in.
Read more about the options.
What are the benefits?
For you and your clients
Our FPP has been designed to reward both you and your clients. They'll benefit from a huge choice of funds and the potential to receive an attractive bonus, while you'll benefit from an innovative commission structure and charging options, as well as some very useful online tools.
Read more about the benefits.
Rewards
Loyalty always deserves a reward. And that's just what your clients will get with
our FPP. Depending on the structure of their plan, they'll benefit from either a fund bonus or a fund value rebate. It's a little something extra from AEGON Scottish Equitable.
Read more about the loyalty rewards.
This communication is directed at professional financial advisers. It shouldn't be distributed to, or relied upon, by private customers.
