Standard Life and Fidelity International have launched a new pension fund designed to offer greater choice for those planning for or already at retirement.
The Standard Life Smoothed Return Pension Fund is aimed at advised investors seeking to grow their pension investment while providing some shelter from the daily uncertainty of investing.The ‘smoothing’ process will cushion the daily ups and downs of the stock market, helping to reduce the risks created by needing to withdraw income at regular but otherwise inopportune times, the duo said.
Claire Altman, managing director for individual retirement at Standard Life, said: “One of the biggest issues we currently face as an industry is ensuring good outcomes for people at retirement, which is at the very heart of the need for innovation. There is a lack of choice, especially for people looking for solutions to help manage daily stock market volatility when it comes to their retirement savings, a risk many planning for or already in retirement may feel unable to take.”
Altman said there is a “huge opportunity” for providers to develop products that help people use their pension savings and retirement income in the best way.
She added: “The Standard Life Smoothed Return Pension Fund has been born out of this need; providing greater choice with a flexible retirement planning option available on platform that delivers a little more certainty on people’s journeys to and through retirement.”
The new fund will be brought to market by Standard Life, who will provide the fund structure, smoothing, valuation and supporting capital and will set and oversee the strategic asset allocation. The underlying assets will be managed by Fidelity’s asset management business.
The fund, which will be available through Fidelity Adviser Solutions, will begin with a pilot to a small group of advisers from March 2024, before being rolled out to the wider market later this year.
Dennis Pellerito, head of UK wholesale at Fidelity International, said: “With the UK’s population living longer than ever before, there is a clear demand for a range of financial solutions which cater to the different needs of an ageing society. As people spend longer in retirement, they require products and services which offer flexibility and can be tailored to their goals at any stage. The financial services industry, and in particular the advice sector, has a significant role to play in supporting these goals.
“Working together with Standard Life creates a significant opportunity for us to combine the experience within our businesses, and to look at how we respond to the requirements posed by increasing longevity.”
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