Aegon launches RDR-ready pensions

Aegon UK has launched a flexible pension plan and a group personal pension (GPP) plan that are compliant with the retail distribution review (RDR).

Under the RDR, which takes effect from 31 December 2012, pension providers will no longer be able to remunerate independent financial advisers (IFAs) and employee benefits consultants on a commission basis. Instead, they must be paid via a consultancy charge negotiated with employers.

Aegon will also replace its current income drawdown plan with a new product built for RDR. One Retirement will be a single account for both pensions savings and income drawdown.

Adrian Grace, chief executive officer at Aegon, said: “We recognise that many advisers are having to radically transform their business models ahead of the RDR.

“So instead of doing the bare minimum to comply, we have completely overhauled our core propositions.”