Rockingham's Rita offers drawdown deal

11 December 2009 8:00 am | By Helen Pow

Rockingham Retirement has launched a temporary income drawdown product.

The retirement income tri-investment account is structured as a Sipp investing in a UK-based cash deposit account, Prudential’s with-profits trustee investment plan and the ARM assured income plan. It has a 10-year fixed term and aims for an income equal to or better than a traditional annuity although clients can increase or decrease the income, within GAD limits, or take nil income.

At maturity, clients can invest their fund again within the Sipp or move their pension pot. If they die, their beneficiaries will get 100 per cent of the fund. Rita has no charges although the firm takes 3.36 per cent commission on the Prudential fund and 3.75 per cent on the ARM plan.

Initially, the product will only be available through Rockingham direct but will be offered on a whole of market basis from April. The firm is planning to launch a second version next year, which guarantees fund performance of 5 per cent and safeguards 70 per cent of capital.

Managing director Steve Hunt says: “Rita is easy to understand, offers low risk, high returns and, crucially, comes with no charges.”

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