Standard Life plans ‘save more tomorrow’ pension scheme

How does this differ from an 'indexed contributions' option available under most PPs? Am I missing something?

My thoughts exactly! Available from Scot Am in 1988.

or indeed salary related contributions.......

Sure there is more to it than an individual or employee sponsored GPP with indexation or set percentage of salary sacrifice however Standard Life Marketing is often an oxymoron!

What happened to 'smart money SIPP' campaign.

As a Wrap SL wrap adopter with approaching £100m in assets I do wonder when they will provide more focussed support instead of more expensive 'push & pull marketing' to an over targeted public and employer base.

I am sure they know what they are doing!

I think this is aimed more at the big EB consultants and networks who Standard Life seem to nestle up to. The big boys want to put in a group scheme for an employer and then do very little for their large fees. Lifestyling and this auto increase will enable them to do just that.

Consultancies like ours have long been making sure scheme members are encouraged to save more through regular communications and clinics and education as well as contribution structures that where possible increase the contributions with service.

And of course Standard Life will no doubt be marketing it direct into FTSE 350 companies!

You can't blame the life companies for trying to evolve as we all have to make changes.

With Shareholders many of whom are probably policy holders and even advisors, Std Life have a duty to make changes to their business model to ensure survival.

We have seen enough life companies go down the tubes over the last 30 years so all the best to them although I fail to see what they are actually doing that is not the same as available in the market place today.

Not knowing a lot about the other types of schemes on the market, the only thing that jumps out is the up front commitment to increase savings in line with increased salary (remember pay rises!!), do the other schemes legally contract the individual to increase in line with increased salary or can they opt out?

Bob Donaldson

Of course life companies need to evolve. I think the problem with this article is (not for the first time) the way Citywire report it. It's really a facility aimed at group schemes.

I just wish that if life companies evolve they were open and transparent about what they wanted to achieve. If they are going to go direct or concentrate on the fee based EB boys they should at least be honest about it.

Otherwise as one of the other comments says they seem to come across as push me pull you marketing strategies.

Usually found........

I think what we're talking about here is like the system Axa were trying to espouse before they imploded. You join on a certain contribution - usually % of salary - and then each year (or some other period) your contribution clicks up another 1% . Whether the employer matches that of course is a whole different ball game.

Thanks Steve. So, it looks like they are trying to auto-link the increase to salary increases to take the burden of decision away from the employee. If they can get the employer to click up at the same time then this would be a grand idea :)

Usually found........

Yes. The philosophy is that if your salary is going up (remember that?) then it's easier to increase the % you pay as effectively you are diverting into pension money you haven't yet got used to having to spend.

We've used a similar system on our group plans with some success.

I use it myself and am now paying 93% of salary! (As if ;-))

Standard Life, do your product & competitor research a little more throughly please.

This is old old news. Friends Provident did SMT at least three or four years ago. Axa also did it and brought the originators over from the USA for roadshows.

Personally SMT is a great idea provided its sold transparently from outset and each person that signs up are fully aware of their future financial commitments.

What I am very sceptical about is whether the product terms are that transparent and if the introducer of clients to a SMT product stay the course and continue to review with the employees if SMT is actually working for them.

You cant sell the product and walk away thinking their futures are in safe hands....or can you ??

MSD, spot on. And regular reviews are crucial.

And the larger EB consultancies are the biggest culprits at doing any of that type of work. They see theor client as only the employer and see individual reviews or advice the dirty end of the business.

Smaller advisers are far more likely to review in my experience.

Is 'Save more tomorrow' anything like the 'Free Beer Tomorrow' sign in my local?

Happy Friday people.

Actually, yes. Let me explain. Some other time.