Retirement specialist Aegon has launched a new initiative for workplace pension members to allow them to give loved ones access to the scheme price benefits when they take out an ISA. 

Known as Family price match, it will allow people to open an Aegon stocks and shares ISA at the same service charge that is available to the member.

The saving made will depend on the difference between the charge under Family price match compared to what people might be charged for a stocks and shares ISA elsewhere.

If the family price is 25 basis points less, then a £20,000 ISA investment under the scheme terms could be worth an extra £294 after five years, or £720 after 10 years, the firm said.

If the Family price match is 50 basis points less, then a £20,000 ISA investment could be worth an extra £591 after five years or £1,455 after 10 years.    

To access the offer those already saving into an Aegon workplace pension will receive a unique code through the Aegon UK app, that they can share with up to five family or friends.

Nick Roy, commercial director, workplace at Aegon, said: “Aegon’s Family price match is an offering to our members, making saving more cost-effective. It means five family or friends can enjoy the same service charge when they purchase a stocks and shares ISA.”

He said the offer “exemplifies the great power of workplace pensions to offer competitive charges and aims to extend these benefits on a wider scale.”

He said Aegon is focused on enhancing pension scheme members savings and retirement outcomes in its proposition.

• How the values are calculated

Constants:  

• Amount invested in year one: £20,000 
• Annual investment growth: 4% 

Variables:  

• Increase in annual growth – No Family price match: 0.00% 
• Increase in annual growth – Family price match charge reduction of 25bps:  
• Increase in annual growth – Family price match charge reduction of 50bps: 

Results:  

The ISA calculations assume investments in the other ISA grow at 4% whereas the charge savings under family pricing mean the ISA grows at either 4.25% or 4.5% .