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Old Mutual Wealth to launch new flexi-access drawdown facility

11/02/2015

Old Mutual Wealth, one of the UK’s largest wealth managers, is to launch a new flexi-access drawdown facility via its Collective Retirement Account (CRA) in time for the new pension freedoms that come into force on April 6, 2015.

The new flexi-access drawdown options will be available to all existing and new CRA customers and for all nominated beneficiaries (in the event of a customer’s death), giving customers flexibility on how they wish to use their pension savings to provide income and leave any remaining wealth when they die.

People will be able to set up monthly income payments similar to a salary or take ad hoc withdrawals from uncrystallised funds at intervals that suit them. The tax free cash element (normally 25%) can either be taken in one go up front or taken in instalments as part of each ad hoc withdrawal.

Customers currently in capped drawdown will be able to convert their account to flexi-access at any time from April 6, 2015, or they can continue to use capped drawdown in order to maintain their current annual contribution allowance.

There will be no specific charge to use any of the new flexi-access drawdown facilities; customers will only pay the normal platform charge and underlying fund charges of their investment portfolio.

Adrian Walker, Old Mutual Wealth’s Retirement Planning Manager, said: “We believe that people should be trusted with their pension savings and so are pleased to be offering flexible access aligned with the new rules. However this isn’t about products or even the new rules, it is about people and their money. Each individual needs to fully understand their personal circumstances, looking at all of their savings, not just their pension before deciding on their future income planning.

“The guidance guarantee is fine but it will be no substitute for professional financial advice. With more flexible withdrawal options and new tax effective ways in which people can leave pension savings to nominated beneficiaries when they die, it can be argued for many that their money purchase pension savings should remain invested for as long as possible. There is a danger that people get carried away with the new freedoms if they don’t seek advice and as a result suffer unexpected tax bills or loss of future benefits. The Government’s Pension Wise guidance service should make people aware of the options and this in turn will lead to higher demand for financial advice.”

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com

Notes to editors:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.