LV= will add a drawdown option to its personal pension following George Osborne’s shock Budget changes to the pension tax system.
Clients with over £37,500 in their pension pot will be charged £175 to access income drawdown. Those with a smaller pot will be charged an initial fee of £295.
Clients will need a minimum fund size of £30,000 at retirement to access the drawdown option.
LV= life and pensions managing director Richard Rowney says: “We have launched this product in direct response to the changing retirement landscape, and subsequent adviser demand for a low cost, and simple drawdown solution. This product will be offered alongside both our guaranteed income drawdown, and our self-invested income drawdown proposition.
“Our aim is to work with advisers to provide the retirement income options that meet the needs of their clients. We recognise that those clients who would traditionally have had little choice but to annuitise in order to take benefits now have a variety of options to choose from.”