Share

Latest from the Media Centre

27/03

Skandia one of the first companies to implement pension changes today

Skandia, part of Old Mutual Wealth and one of the largest pension drawdown providers in the UK, has today launched new system functionality to enable customers and financial advisers to take advantage of the new flexible pension regime with immediate effect.

In the Budget announced just last week, the Government revealed that from today, customers in flexible drawdown need only show they have £12,000 in guaranteed income to be eligible (down from £20,000), and capped drawdown maximum income would be increased to 150% of GAD (up from 120%).

The changes required some significant system changes for retirement income providers, but Skandia has been able to deliver the changes today. This means that, in accordance with the Government’s announcement, existing drawdown clients will move to 150% of GAD from the start of their next drawdown anniversary. Existing clients wanting to start drawdown and any new business will have access to capped drawdown at 150% immediately.

In addition, clients who are able to demonstrate the lower amount of £12,000 in guaranteed retirement income will now be able to enter a flexible drawdown arrangement.

Advisers will receive details of how their clients are able to benefit from the changes in an email on Friday 28th March.

Adrian Walker, retirement planning manager at Skandia, comments:

“We welcomed the Chancellor’s changes to the retirement income market in last week’s budget and immediately focused on how we can deliver the new flexibility as quickly as possible for financial advisers and customers.  Advisers and their clients can now take advantage of the new rules for existing as well as new drawdown arrangements and we expect to see increased take up of income drawdown as a result of these changes.”

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK & Italy* and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £119 billion in customer investments (as at 30 September 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million customers across the world and has a total of £342.7 billion assets under management (as at 30 June 2016).

*Old Mutual Wealth announced the sale of Old Mutual Wealth Italy to Ergo Italia on 9 August 2016. The transaction is pending completion.

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.