Why use the Collective Retirement Account for flexible drawdown?
For those customers with £12,000 guaranteed pension income, the CRA can provide a very flexible way of accessing their pension pot to provide immediate income without restriction in advance of the Government’s proposed pension income changes from April 2015. Flexible drawdown is an option you would normally associate with a SIPP, but the CRA has this facility and importantly comes without many of the charges normally associated with investing in a SIPP.
* Judith Rowntree is a fictitious character created for the purposes of this case study.
** Based on GAD rates as at January 2014.