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Scottish Widows launches Drip-feed Drawdown

29 April 2018

Scottish Widows has launched Drip-feed Drawdown, a phased retirement income capability, available through its Retirement Account.

It is designed to give customers a tax-optimised, flexible way to manage and control their withdrawals, as part of a long-term sustainable income strategy.

Following the introduction of the Pension Freedoms three years ago, a growing number of pension investors are opting to withdraw money using income drawdown and the new capability is designed to “help customers’ retirement income last longer” and allows advisers to better manage the overall tax position of their clients, Scottish Widows said.

Withdrawal payments can be made monthly, quarterly, bi-annually or annually. There is no charge or minimum amount that can be paid out regularly.

The new feature has been designed to complement the provider’s retirement range. It recently launched four retirement portfolios designed to help protect income.

Catherine Stewart, head of individual propositions at Scottish Widows, said: “We are underlining our commitment to supporting advisers to serve their clients through this flexible, easy-to-use proposition. In particular, the integrated flexible payments option and tax-optimising ability makes it easier for advisers to offer a long-term sustainable withdrawal strategy that fits with each client’s personal circumstances.”

The Drip-feed Drawdown capability includes an automatic feature which checks if there is sufficient cash available. If not, it automatically disinvests from available Scottish Widows funds to enable this to happen.