The product will be available through Prudential's Flexible Retirement Plan wrapper to customers with a guaranteed secure income of at least £12,000, which can come from a combined range of sources including a workplace pension, an annuity, the state pension and an overseas pension.
Prudential has also confirmed that it will update this option and will provide Flexi-Access Drawdown to new and existing customers from April 2015, allowing customers to access pension accumulation, Capped Drawdown, Flexible Drawdown and Phased Drawdown all within a single product.
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.”
