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Pru launches flexible drawdown offering

Prudential has become the latest major insurer to launch a flexible drawdown proposition ahead of new Budget freedoms coming into force next year.

The Pru is making flexible drawdown available through its flexible retirement plan wrapper to customers with a guaranteed secure income worth at least £12,000.

The provider will update this option to offer savers flexi-access drawdown from April.

Prudential head of business development Vince Smith-Hughes says: “These changes will allow customers to access income drawdown without limits which is suited to clients who want increased control over how they use their retirement savings for income.

“While many advisers will be using these products to create a sustainable income stream, we wanted to provide maximum flexibility to help them cater for individual client circumstances.”

The issue of how to serve drawdown customers post-April 2015 has divided insurers, with some – including Royal London and Standard Life – planning to restrict investments for people who do not take advice.

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