Pension 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.