Bringing you live news and features since 2006 

UK flag

Old Mutual Wealth launches new flexi­access drawdown facility


Old Mutual Wealth, one of the UK’s largest wealth managers, is to launch a new flexi-access drawdown facility via its Collective Retirement Account (CRA).

The new flexi-access drawdown options will be available to all existing and new CRA customers and for all nominated beneficiaries (in the event of a customer’s death), giving customers flexibility on how they wish to use their pension savings to provide income and leave any remaining wealth when they die.
People will be able to set up monthly income payments similar to a salary or take ad hoc withdrawals from uncrystallised funds at intervals that suit them. The tax free cash element (normally 25%) can either be taken in one go up front or taken in instalments as part of each ad hoc withdrawal. 
Customers currently in capped drawdown will be able to convert their account to flexi-access at any time from April 6, 2015, or they can continue to use capped drawdown in order to maintain their current annual contribution allowance. 
There will be no specific charge to use any of the new flexi-access drawdown facilities; customers will only pay the normal platform charge and underlying fund charges of their investment portfolio.
Adrian Walker, Old Mutual Wealth’s Retirement Planning Manager, says: “We believe that people should be trusted with their pension savings and so are pleased to be offering flexible access aligned with the new rules. However this isn’t about products or even the new rules, it is about people and their money. Each individual needs to fully understand their personal circumstances, looking at all of their savings, not just their pension before deciding on their future income planning.
“The guidance guarantee is fine but it will be no substitute for professional financial advice. With more flexible withdrawal options and new tax effective ways in which people can leave pension savings to nominated beneficiaries when they die, it can be argued for many that their money purchase pension savings should remain invested for as long as possible. There is a danger that people get carried away with the new freedoms if they don’t seek advice and as a result suffer unexpected tax bills or loss of future benefits. The Government’s Pension Wise guidance service should make people aware of the options and this in turn will lead to higher demand for financial advice.”

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
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..

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