Prudential has launched a non-advised personal pension and drawdown product, which will give savers access to the full range of pension freedom options while catering for those who “feel they do not need the help” of a financial adviser before choosing income drawdown.
The Pension Choices Plan offers a range of multi-asset funds to help meet customer’s objectives. Customers can also select a cash fund if they want capital protection ahead of investment growth.
The product gives access to four funds within Prudential’s risk-managed PruFund range which is in addition to a choice of four funds from the risk-rated Dynamic Portfolios range.
It is the first time Prudential’s PruFund range has been available to consumers without financial advice since it was introduced in 2004.
The minimum investment on the Pension Choices Plan is £25,000.
The annual product charge will depend on the fund selection, however for the “large majority” of people, the charge will be 1.45 per cent.
There will be no charge for withdrawals and no limit on the number or frequency of withdrawals.
Customers can also transfer their plan to an annuity or to another provider at any time without charge.
Retirees whose pension savings are safeguarded will still be required to take financial adviser before getting this product, the provider added.
John Warburton, Prudential’s executive director of distribution, said: “We are unwavering in our belief that a majority of people will find financial advice to be the best protection against taking a wrong turn in the retirement planning journey.
“However, we also respect the significance of choice within the new pension freedom regime so it is important that we accommodate those who feel comfortable making big retirement decisions for themselves.
“We are aware of an appetite from existing customers for a non-advised drawdown proposition, particularly where people wish to access their fund over a few years but don’t want to trigger a large tax payment.”
In the last couple of weeks, both Metlife and Partnership have announced new drawdown offerings.
Partnership is set to launch the Enhanced Retirement Account which combines a guaranteed annuity income with flexi-access drawdown through a single self-invested personal pension wrapper.
Metlife has also rolled out a flexible guaranteed drawdown product, designed in response to pension freedoms, letting savers start, stop and restart their income to suit personal needs and if income is stopped, the income deferral increases restart.
Meanwhile, figures recently published by software provider Selectapension for April to August revealed that 59 per cent of people are now choosing to guarantee the drawdown of their pension pots, while just 41 per cent are looking to purchase a guaranteed annuity.