Prudential has introduced a flexible drawdown option to its range of retirement solutions ahead of the April 2015 pension reforms, at which point the product will be updated to comply with the provisions for flexi-access dradwon in the new rules.
The flexible drawdown option is available immediately through the flexible retirement plan wrapper to customers with a guaranteed secure income of at least £12,000. This is the income level set at the Budget for flexible drawdown, down from a previous £20,000.
This income can come from a range of combined range of sources including a workplace pension, an annuity, the state pension and an overseas pension.
The firm has also confirmed it will update this option and will provide flexi-access drawdown to new and existing customers from April 2015, when the income requirement regulations change.
Customers can now access pension accumulation, capped drawdown, flexible drawdown and phased drawdown all within a single product, Prudential said in a statement. It also separately offers an asset-backed ‘income choice’ annuity and conventional annuities.
Vince Smith-Hughes, head of business development at Prudential, said: “These changes will allow customers to access income drawdown without limits which is suited to clients who want increased control over how they use their retirement savings for income.
“While many advisers will be using these products to create a sustainable income stream, we wanted to provide maximum flexibility to help them cater for individual client circumstances.”
Tulsi Naidu, executive director at Prudential said: “The changes that were made necessary by the Chancellor’s Budget in March have created the opportunity to reignite people’s interest in saving over the long-term in preparation for retirement.
“The new regime is being defined in terms of flexibility and the changes we are making at a product level gives us one of the widest ranges of retirement solutions in this market. We remain focused on helping advisers and their clients benefit from the new pension freedom rules.”