AXA Wealth has introduced a flexible drawdown to its Retirement Wealth Account, the company's stand-alone Sipp.
The company says that this enhancement will give investors greater independence and flexibility for drawing income in retirement.
The addition of flexible drawdown gives those customers who are approaching, or at retirement, more options to access their personal pension fund, alongside the current annuity and capped drawdown choices.
Nick Elphick, managing director of Specialist Products, AXA Wealth, said: "Flexible drawdown gives clients more freedom with their income in retirement and as people are working and living longer these additional options have never been more important. The introduction of flexible drawdown to the Retirement Wealth Account is an important addition and further enforces the continued commitment by AXA Wealth in a market where advisers have limited options."
AXA Wealth says the client benefits are:
· a tax-free lump sum of up to 25% can be taken (unless client's fund is already in capped drawdown)
· unlike an annuity, an individual does not have to decide on whether to include spouse's benefits at the time they access the feature
· the income can be varied, with no maximum upper limit (other than the total size of the fund)
· the fund remains invested, with the potential to grow further
· an individual can take their entire fund in one go (subject to tax)
· the fund can be passed on after death (subject to a tax), or a surviving spouse or dependant can continue to use the flexible drawdown feature.
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Mr Elphick added: "We feel that it is important to give clients the flexibility to access their retirement funds in a way that best suits their current financial situation. While annuity rates are at an all-time low the addition of flexible drawdown allows clients to choose the best retirement route for them.
"Flexible drawdown also offers excellent tax planning opportunities, particularly when used in conjunction with other tax efficient investments. Those planning for retirement must seek advice that considers the full range of options available including investments and alternative products to deliver retirement income."