Aviva is launching a new phased drawdown option on its Wrap and SIPP platform that will offer customers one of the most flexible, tax-efficient methods of taking a retirement income.
Phased drawdown allows customers to draw a regular income using a combination of taxable income and their tax-free cash entitlement, so they can control the level of taxable income they receive in retirement.
Aviva's phased drawdown option could also maximise potential death benefits, as the online system calculates the minimum amount needed to move into drawdown each month, ensuring as much as possible remains ‘uncrystallised', which could be paid to beneficiaries as an IHT-free lump sum should the client die before the age of 75.
Aimed at customers with pension assets in excess of £50,000, the phased drawdown option allows individuals the flexibility to manage income levels on an on-going basis, with the ability to adjust their income to their changing needs.
Aviva is the only provider to offer a fully automated, online monthly phased drawdown service across its full SIPP fund range, and there are no additional charges levied by Aviva on customers wanting to use either standard income drawdown or phased drawdown.
Anthony Rafferty, director of individual accumulation at Aviva commented:
"We know the shape of retirement is changing, with many people working for longer and retiring gradually. 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. This further strengthens the Aviva range of retirement solutions on offer."
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