Pru launches single retirement account for savings and income

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Prudential is launching a single retirement planning account which customers can use for both accumulation and income withdrawals at the same time.

The Retirement Account will be launched on 26 September and will be offered on an advised basis.

The account will include a pension savings account and pension income account, which allows for withdrawals from age 55.

Customer can pay extra to guarantee their capital or to secure minimum income levels, though this option is only available to savers who invest through the PruFund range.

The minimum income guarantee will continue to be paid out in the event the value of the fund falls to zero.

Charges range from 0.25 per cent to 0.65 per cent depending on the amount invested, plus the cost of any guarantees.

Prudential distribution chief executive John Warbuton says: “Significant steps have been taken to banish the rigid pension savings framework that previously existed and, with the introduction of the Retirement Account, we have created a fully flexible way for customers to save for and secure an income in retirement.

“Having first reworked our existing products to facilitate certain aspects of pension freedom, today we have gone further by creating a comprehensive retirement plan which gives savers all the flexibility and freedom they need to prepare for and then securely enjoy their retirement.”