Bringing you live news and features since 2006 

Skandia enhances CRA flexible drawdown proposition


Skandia’s Collective Retirement Account (CRA) flexible drawdown facility has been extended to accept flexible drawdown transfers from other registered pension schemes.

When flexible drawdown was first introduced there was a very limited choice of solutions available. This led to many clients deciding to use a SIPP provider for flexible drawdown, purely due to the lack of choice elsewhere.
As the flexible drawdown market has evolved, clients now have more choice, and this new enhancement by Skandia creates an opportunity for those already using flexible drawdown through a different provider to review the costs associated with providing the facility.
Traditionally, there can be additional costs associated with establishing flexible drawdown, with some providers charging additional fees at numerous stages of the life of the drawdown including costs for setting up the facility or moving a capped fund into flexible drawdown.
Flexible drawdown is an integral option on Skandia’s platform pension (the Collective Retirement Account) representing a more cost-effective alternative for investors, currently charging GBP57.20 per annum for the drawdown facility (in addition to its normal platform fee). 
Some advisers and clients will want to continue to use flexible drawdown through a SIPP wrapper due to the wider investment choices available. However, unless they are fully using these investment choices, they may benefit from moving to a platform pension investing in a portfolio of collectives. Reviewing suitability of contracts in a wider marketplace than that which existed when the original decision was made could create significant long term cost savings, and therefore benefits for clients.
Adrian Walker (pictured), Skandia’s pension expert, says: “As the flexible drawdown market has developed, alternative fee structures have become available which should inform the advice review process for any client with such investments. Delivering a cost- effective solution will mean that clients can benefit from lower on-going charges on pension savings.
“We have already seen significant demand for flexible drawdown business on our platform and I’m confident that now being able to accept flexible drawdown transfer business to our product will accelerate that demand.”

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by