Why choose us for Tailored drawdown?
Our Tailored drawdown option offers:
- Two income streams: we can pay your clients any combination of tax free and taxable income, within legislative limits, to optimise tax efficiency for your clients
- More value: help keep as much value within your client's pension plan as possible, only crystallising what is required.
- Flexible and efficient: Tailored drawdown will automatically provide income until your client decides to change their income instructions or no tax free lump sum is available
How to charge your clients
The initial adviser charge that can be paid on Tailored drawdown will be limited. This is because the initial adviser charge is calculated on the amount moving into drawdown and the individual phases may be small.
So the best option for charging your clients will be one of the following:
- Requesting an initial adviser charge when the new money is applied and before the Tailored drawdown starts
- An ad hoc adviser charge from the whole pension plan at any time
- Ongoing adviser charges set up in the normal way and applied to the value of the total pension plan
Eligibility and legislative restrictions
Tailored drawdown is available through our Active Money Personal Pension (AMPP) and Active Money
Self Invested Personal Pension (SIPP) as long as your client is invested in one of the following:
- Insured funds
- SIPP bank account
- SIPPZone mutual funds
- Selected DIM providers
The only restrictions on your clients' two income streams are legislative, for example:
- Tax-free income can't normally be more than 25% of the uncrystallised pension plan
- Taxable income can’t be more than the value of the post-crystallised pension plan
Before you apply
If you want to request a quote or apply for new business, you can visit our service directory for more information.
Before you apply, you should take note of the following:
- We'll always ensure drawdown income is paid to your clients but we'll notify you if their bank account goes into a negative balance
- If you're calling to request a quote or move a client into drawdown, we need two income instructions (one tax-free and one taxable)
- If your clients are invested in our SIPP, we recommend six months' income and charges are held in the SIPP bank account to ensure drawdown income is funded
Money invested is at risk. Tax may change in the future.