The Prudential Flexible Retirement Plan will be closing to new business in September, Money Marketing can reveal.
The provider will stop accepting new top-up contributions or transfers, and will no longer accept new money into the income drawdown option from 17 September.
Existing customers will still be able to continue paying regular contributions.
Prudential has been writing to advisers and customers to inform them of the wind down, Money Marketing understands.
The provider has taken the decision to close the product after launching the Prudential Retirement Account in 2016.
Money Marketing understands around 90 per cent of new business sales are now going into the Retirement Account, which is a “more modern product” backed by a new administration platform, with greater flexibility and a wider range of features.
The Flexible Retirement Plan was launched in 2005. A spokesman says: “It is fairly common in financial services that when one product gets a bit older it gets replaced. The vast majority of new money is going to the Retirement Account.”
The Flexible Retirement Plan launched its Sipp option in 2006, followed by drawdown a year later and Prufund options in 2008.
The Prudential Retirement Account enables customers to plan for accumulation and income withdrawals at the same time with both a pension savings and pension income account. Those investing through the Prufunds range can also pay additional contributions towards capital guarantees or minimum income security.
However, it suffered teething issues last June after reporting unexpectedly high demand.