I was pleased to see that Nick Bamford (Money Marketing, May 31) has recognised the benefit of our new simple charging structure for drawdown contracts. However his suggestion that we set £250,000 as the minimum entry level is misleading.
While in many cases it is advisable to have substantial sums in a drawdown contract, we do not have any minimum contribution levels. As our products are all sold via IFAs, the question of minimum entry levels is one for them to decide.
This will be dependent on a number of considerations, including level of income required and other sources of income that their clients may have. In some instances, these factors may override the problems usually associated with investing lower amounts in an income-drawdown contract.
However a key point that we have always stressed is that the quality of independent financial advice is vital when recommending drawdown, which is why we believe that advising on income drawdown should become a permitted activity.
Also, on the question of protected rights transfers in, we are able to accept these into our drawdown contract via a very strong multi-manager personal pension plan. This gives clients access to a wide range of investment funds, by 18 of the leading UK fund managers Mike Kellard
Sales & marketing director
Winterthur Life, Basingstoke