Prudential has reduced the minimum investment for its drawdown offering from £50,000 to £25,000 following Chancellor George Osborne’s dramatic pensions overhaul.
Under interim changes announced in the Budget last month, the minimum income requirement for flexible drawdown was cut from £20,000 to £12,000 and the maximum income for capped drawdown raised from 120 per cent of GAD to 150 per cent.
Providers, who were given just a week’s notice of the reforms, have scrambled to adjust their systems to accommodate the cnew rules.
The Pru has now halved the minimum investment for the Flexible Retirement Plan in response to the Budget announcement.
Prudential head of business development Vince Smith-Hughes says: “The Chancellor announced in the budget some of the most far reaching changes to the retirement income landscape ever seen.
“However it should be remembered that these proposals are not set in tablets of stone, and there could be further changes before they are embedded into regulation.
“For now, we are delighted to have been able to reduce our minimum premium for drawdown to £25,000 to assist advisers in giving advice in the transitional period, and declare our intention to be fully ready for the new drawdown regime when it comes in next year.”