Aviva has overhauled its income drawdown offering and launched a flexible product to give retirees more choice when taking retirement income.
The provider said it was essential the pensions industry continually developed competitive and good value retirement income products.
Aviva has modified its drawdown suite to make it easier for customers to stick with a single platform for both pre-retirement saving and post-retirment income. It also said modifications meant clients could take income in a more tax efficient way.
Its new flexible single and phase products mean clients can access funds without being affected by Government Actuary's Department (GAD) limits. And its phased drawdown option can also help safeguard valuable death benefits, it said.
Aviva at-retirement managing director Clive Bolton said: "For those willing to accept some investment risk, income drawdown can offer tax efficient options, and a level of flexibility that enables them to adjust their payments when they need to. But at the same time, they can also keep some of their pension fund invested, and protect their valuable death benefits.
"We're likely to see customers increasingly turning to advisers for help in making these critical decisions around how to maximise their retirement income over the remainder of their lives. That's why we have developed useful calculator tools to assist advisers."
Similar but different
Flexible and capped drawdown operate in similar ways but, Aviva said, flexible products allow clients to take any income amount they want within their available funds, free of GAD limits. Customers need to secure an minimum income of £20,000 a year before they qualify for flexible drawdown.
Aviva said it operates a minimum investment amount of £50,000 for drawdown clients, before taking tax-free cash and any adviser charges. It added payments can be tailored to customers' needs (within GAD rates for capped drawdown).
Aviva's income drawdown facility is offered as part of its Pension Portfolio product, on the Aviva Platform.
In November last year, Skandia reported a surge in flexible drawdown business. It said the rise in business prove annuities were not the only answer when it comes to retirement income.
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