Income Drawdown

Here are some of the main features of our Income Drawdown plan.

There’s a choice of over 250 funds for clients to invest in, details of these can be found in the Pension Fund Guide (pdf).
Competitive and transparent charges make it a cost-effective way to take an income without having to buy an annuity. View our Fund Charge Information (pdf) for further details.
Clients have the freedom to switch into Aviva`s SIPP – under Aviva’s one set of rules(pdf).
View Income Drawdown key features(pdf) for more information.

Here are some of the facts you need to know about our Income Drawdown plan.

Criteria	Min/max	Details	Notes
Age Limits		55	If a lower retirement age has been agreed with HMRC, your client could take out a plan before age 55.
		72 for new applications and arrangements	No age limit for holding Income Drawdown

		95
Term	Min term	None	No minimum term for holding Income Drawdown.
Payment Limits	Min payment to start plan	£50,000	After taking tax-free cash or paying a Lifetime Allowance Charge.
Payment Limits	Min subsequent payments	£15,000	After taking tax-free cash or paying a Lifetime Allowance Charge.
Transfers	Max number of Protected Rights transfers	1	This will be set up as a separate arrangement.

Here are the charges and commission for our Income Drawdown plan.

Type of charge	Detail	Notes
Base Charge	From 0.55% to 1% Depending on amount of percentage payment selected.	4% commission = 1% Base Charge. For each 0.44% of commission given up the Base Charge is reduced by 0.05%. Nil commission = 0.55% Base Charge.
Annual fund charge		The Annual Fund Charge is made up of the Base Charge, plus any of the following appropriate charges.
Fund based commission	Up to 2% max depending on options chosen	Dependent on the commission level agreed.
Arrangement size charge	0%	Currently set at zero.
Additional yearly and fund manager expense charges	Varies	Extra charges may apply dependent on the fund(s) selected: Additional Yearly charge Fund Manager Expense Charge.
Advice Charge Payments	Charge taken is equal to the value of the commission paid (i.e. on a 1 : 1 basis).	Dependent on the commission level agreed.
Fund Value Advice Charge Payments	Up to 2.00% in 0.01% steps.	Dependent on the commission level agreed.

Type of Commission	Detail	Notes
Percentage Payment Commission	4% max in 10 steps down to 0%	Uplift available.
Fund Based Commission	Up to 2% in 0.01% steps	Uplift not available.
Percentage Payment Commission	Terms as detailed above	A combination of both Percentage Payment and Fund Based Commission can be used.Maximum 4%An age factor is applied to Percentage Payment Commission. The Age factor is 0% for ages below 23 and above 69. For ages 23-69 the age factor varies from a minimum of 34% to a maximum of 104%.
Fund Based Commission	Terms as detailed above	A combination of both Percentage Payment and Fund Based Commission can be used. Maximum 2%
Further information	Commission	Income Drawdown commission choices and charges summary
Advice Charge Payments	Any amount up to 7% of payments.	The value of the commission paid is the same as the value of the charge for advice taken (i.e. on a 1 : 1 basis). Uplift not available. Please see charges above.
Fund Value Advice Charge Payments	Up to 2.00% in 0.01% steps.	Uplift not available. Please see charges above.

Here is some information to help you to decide if our Income Drawdown plan is right for your client.

Designed for customers who	Not designed for customers who
Are retired or semi - retired with a suitable level of pension funds (likely to be £100,000 or more) Want to access tax-free cash prior to, or on retirement with the fund option to draw an income directly from the fund. Want to delay buying an annuity and remain invested. Would like dependants to benefit from their pension fund when they die.	Are under 55 years old Want to buy fixed income (annuity) Are risk-averse. The pension fund value could go down as well as up, annuity rates could improve or get worse. The value of your client's pension fund when they come to take benefits may be less than has been paid into it.
Current income levels Existing pension scheme arrangements Target level of disposable income in retirement Anticipated retirement date Required fund range Additional income requirements Attitude to risk Understanding that this does not necessarily provide an income for life.	Conventional or enhanced annuity Other forms of non-pension savings and investments.

Designed for customers who

Not designed for customers who

Are retired or semi - retired with a suitable level of pension funds (likely to be £100,000 or more)
Want to access tax-free cash prior to, or on retirement with the fund option to draw an income directly from the fund.
Want to delay buying an annuity and remain invested.
Would like dependants to benefit from their pension fund when they die.

Are under 55 years old
Want to buy fixed income (annuity)
Are risk-averse. The pension fund value could go down as well as up, annuity rates could improve or get worse.
The value of your client's pension fund when they come to take benefits may be less than has been paid into it.

Key considerations

Possible alternatives

We have a wide range of support staff available to help you, view our contact details to find the telephone number which meets your needs.

Features