Platforms and providers are showing high interest in UFPLS, the chief executive of Dunstan Thomas has said.
Chris Read has said most platforms and providers are contacting his Portsmouth-based pensions software firm for a system which allows them to use so-called uncrystallised funds pension lump sum.
This is a method of allowing people to access their pension funds introduced in the Taxation of Pensions Act 2014, given Royal Assent this week.
It will give people the flexibility to take one or more lump sums from their pension fund, with 25 per cent of each payment tax free and 75 per cent taxed at their marginal rate, without having to enter into drawdown or take all of their tax-free lump sum in one go.
Mr Read said: “Our customers are all interested in taking on our UFPLS capacity so I think it will be one of the features of next year.
“I don’t know how they are going to promote it but I just know they are all asking about it. We are sensing there will be quite a stiff demand for it.
“While there is interest across the board it is the platforms which are more interested than the providers.”
Mr Read said it is likely to appeal to lower value clients who are not attracted to annuities or going into drawdown.
He was speaking as his company launched a 34-page guide called Preparing for Freedom Day based on research it has carried out into the upcoming pension freedoms.
It details some of the challenges and opportunites the industry faces in the run-up to 6 April, claiming advisers have an opportunity to do well from the changes if they have strong expertise while providers face uncertainty.
The research, based on a survey of 9,300 IFAs, found nearly a quarter of firms - 23 per cent - are planning on using new technologies to reach and engage more clients more regularly.
More than half of retirement product providers - 52 per cent - expect the annuity market will be up to 49 per cent smaller by the end of 2015.
A further quarter thought the market would be cut by between 50 per cent and 74 per cent.
The guide also considers how pensions illustrations will have to change
Mr Read said: “The successful organisations post-Freedom Day will be those that can help consumers use their new-found pension freedoms prudently enough to build their retirement savings to the required level, without taking too much risk in so doing.
“It also becomes more important than ever to plan well enough to ensure hard-earned retirement savings do not run out too early.
“A new breed of online tools and illustrations will need to support crucial choices at both accumulation and decumulation.”
The guide can be downloaded for free by visiting dthomas.co.uk/preparingforfreedomday.