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Pensionbee launches non-advised drawdown product

The launch of the product follows the FCA announcing a thematic review into non-advised drawdown

Pensions-savings-retirement-piggy bankPension consolidator Pensionbee has launched a non-advised drawdown product within its personal pension.

The launch of the product comes after the FCA announced a thematic review into non-advised drawdown sales since the pension freedoms in its business plan in April. The regulator expects the review to report back in the final quarter of 2017/18.

Pensionbee says that, over the long term, its drawdown product will work like a bank account with savers taking money when they need to.

Pensionbee chief executive Romi Savova says: “We have become increasingly concerned that some savers are simply drawing down their pensions and putting them into their bank account so that they feel the money is theirs.

“This can result in an overpayment of tax, which is easily avoided by simply giving customers more visibility over their money. We think savers are more likely to focus on better long-term outcomes if they feel control over their pensions.”

Customers can access the service just before they turn 55 and can choose to withdraw their 25 per cent tax-free lump sum or another amount.

The Pensionbee drawdown service will calculate the tax due on a withdrawal and show risk warnings.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This must be stopped, How can Product providers create a Product which has no advice or offers a Non Advised Drawdown facility, then sit back and reap the charges, all with no accountability, this a scurrilous abuse of the Pensions Business by Product providers,

    • Playing devil’s advocate, an adviser is required to issue a suitability report and not an advisory report.If after carrying out an appropriate level of know your client a firm can confirm that a product is suitabke for a consumer, is that a suitability product/, is that ADVICE to take an action or an answer that something is not UNSUITABLE. Most of the traincrashes we are seeing are unregulated products and or introducers, should the FCA be prioritising and saying no non-advised above £20k, £50k or £100k even if an arbiteary figure is just that?

  2. Wasn’t this always going be an outcome of Pension Freedoms? The government created this mess and people will not or cannot pay the cost of advice.

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