Retirees whose pension savings products are protected by the government's safeguarded benefits legislation will still be required to take financial advice before taking this or any other drawdown product.
The product 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 and smoothed 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 and the annual product charge will depend on the fund selection. There will be no charge for withdrawals and no limit on the number or frequency of withdrawals. Customers can transfer their plan to an annuity or to another provider at any time without charge.
Prudential's Executive Director of Distribution, John Warburton, 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.”
