Aviva makes changes to income drawdown

Aviva has remodelled its income drawdown solution and says this will help customers by giving them greater choice and more flexibility in how they take their retirement income. The company said its changes offer customers a range of new options on a flexible as well as a capped basis, available on the Aviva Platform.Options include:• Efficient income withdrawal - the amount the customer needs to crystallise for each payment is automatically calculated, enabling them to take their income in a more tax efficient way.• Taxable income – customers can crystallise the minimum amount needed for their income payment, and can also benefit from 25% tax-free cash as separate lump sums every time an amount is crystallised.{desktop}{/desktop}{mobile}{/mobile}• Non-taxable income – tax-free cash is used to generate the customer's chosen income amount and the remaining 75% of the funds moved into drawdown are invested.• Single drawdown - allows customers to take 25% of their pension fund up-front as tax-free cash, with the remaining 75% being invested and used to pay their chosen taxable income amount.Income drawdown calculators have been designed to help advisers understand how much of their customers' income can be paid as tax-free cash or as taxable income on a gross and net basis.The calculators can be used to assess the rate of return customers will need from their investments to maintain their income over a selected period of time.Income drawdown calculators have been designed to help advisers understand how much of their customers' income can be paid as tax-free cash or as taxable income on a gross and net basis.The calculators can be used to assess the rate of return customers will need from their investments to maintain their income over a selected period of time.Clive Bolton, Aviva's managing director of at retirement, said: "Aviva has remodelled its income drawdown solution to ensure customers have greater choice and more flexibility in how they take their retirement income."We're likely to see customers increasingly turning to advisers for help in making these critical decisions around how to maximise their retirement income over the remainder of their lives. That's why we have developed useful calculator tools to assist advisers."

Aviva makes changes to income drawdown

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