Just to ensure that consumers with pension pots bigger than £50,000 are able to take home a tax-efficient retirement income, Aviva has launched a phased drawdown option on its Self invested personal pension (Sipp) and wrap platform.
Phased drawdown offers a combination of taxable income and tax-free cash entitlements allowing customers to draw a regular income in retirement which is tax-efficient.
The new drawdown will also maximise potential death benefits as the online system calculates the minimum amount required to move into drawdown every month.
Aviva said if the client dies before the age of 75, maximum amount will be paid to beneficiaries since the phased option ensures maximum amount remains ‘uncrystallised’.
Phased drawdown allows customers with more than £50,000 to manage their income regularly, providing an option to adjust their income according to needs.
“We know the shape of retirement is changing, with many people working for longer and retiring gradually”, said Anthony Rafferty, director of individual accumulation at Aviva.
“Aviva can now offer its customers a new tax-efficient, flexible retirement income option that can adapt with them as their needs change. As it is built online, we don’t have to restrict the investments customers can use or charge them extra for using phased drawdown”, he added.