Prudential launches 'save and withdraw' pensions product

Prudential is launching a new Retirement Account which contains two core elements within a single proposition – a Pension Savings Account and a Pension Income Account, designed to facilitate withdrawals at any time from age 55.

Related topics:  Retirement
Rozi Jones
20th September 2016
Prudential
"With the introduction of the Retirement Account, we have created a fully flexible way for customers to save for and secure an income in retirement."

Prudential’s Retirement Account facilitates contributions from individuals, employers and third-parties and includes the option to simultaneously ‘save’ and ‘withdraw’ money from the pension, without having to cash-in or cancel the whole account.

The Prudential Retirement Account will be available from the 26th September and sold on an advised basis.

It has been designed to offer advisers and their clients a range of retirement planning options which are in line with the flexibilities introduced by the pension freedom reforms.

For customers seeking further options, the Retirement Account also provides access to exchange listed stocks and shares investment through stockbrokers.

Prudential’s new Retirement Account also comes with two optional guarantees that offer both capital and minimum income guarantees, for those who select PruFunds as an investment option.

When taking income, the Retirement Account facilitates flexi-access drawdown (including automated phased drawdown) and both regular and ad-hoc cash lump sums, and a minimum income guarantee.

John Warburton, CEO Distribution, at Prudential, said: “Retirement planning today is all about being able to keep your options open, knowing that you have the flexibility to adapt financially as your circumstances change in the future. Significant steps have been taken to banish the rigid pension savings framework that previously existed and, with the introduction of the Retirement Account, we have created a fully flexible way for customers to save for and secure an income in retirement.

“Pension freedom has made the concept of saving into a pension more attractive by handing increased control to individuals over how they manage and access their retirement savings. Having first re-worked our existing products to facilitate certain aspects of pension freedom, today we have gone further by creating a comprehensive retirement plan which gives savers all the flexibility and freedom they need to prepare for and then securely enjoy their retirement.”

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