27th March 2014

FundsNetwork: The Budget’s Pension Changes – Jon Everill

FundsNetwork can confirm that as from today its pension product can cater for the increased opportunities available to clients, especially those wishing to take income drawdown. 

Jon Everill, Head of Advisory Services, FundsNetwork said:

“The changes announced in the Budget will revolutionise the retirement market. They will  create an enlarged opportunity for advisers, whose clients will need even more help and advice in navigating their way through the various new and extended options. 

“Our new pension product and combined flexible drawdown service becomes even more compelling, given its broad investment range and simple, cost effective charging structure.  If advisers didn’t already have a good reason to review clients with older, less flexible  pension contracts, then they absolutely do now.” 

The changes made are:

•             The GAD rate for capped drawdown increases from 120% to 150%

•             The minimum income requirement for flexible drawdown reduces from £20,000 to £12,000

•             Triviality limits have increased from £18,000 to £30,000

•             Small pot commutations have increased from £2,000 to £10,000

To support advisers all pre-sale literature is now live on our website.

Pensions, Budget