Prudential plans non-advised drawdown launch

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Prudential is to enter the non-advised drawdown market this autumn, Money Marketing understands.

To date the firm is one of several providers who decided not to allow customers to open drawdown policies without an adviser.

In July Money Marketing revealed how providers were offering the pension freedoms to customers.

Legal & General opted out for fear customers would make poor decisions, saying drawdown was “not a straightforward product for consumers who are not taking advice to use”.

Aegon also requires customers to take advice.

Earlier today a spokesman said: “Pensions can be complex and require customers to make decisions about investments, how much income to take and how long their savings might need to last.

“We are still working through our offer and will launch when we are confident it will meet customer needs.”

However, last week Money Marketing reported how Standard Life and Scottish Widows have seen sales of direct drawdown boom.

Standard Life said its proposition – which is based around three investment pots – was its fastest selling product ever.

Providers have lost billions in recent years as the pension reforms saw annuity sales slashed, while the charge cap on default auto-enrolment fund has drastically reduced revenue.