Aviva - Income Drawdown

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

There’s a choice of over 240 funds for clients to invest in.
Competitive and transparent charges make it a cost-effective way to take an income without having to buy an annuity.
Clients have the freedom to switch into Aviva`s SIPP – under Aviva’s one set of rules.
Our Pension tracker is an easy way for clients to get details of pre- and post-crystallised benefits.
We have two product options:

View key features for more information Unsecured Pension (USP) for clients aged 55-74.
View key features for more information Alternatively Secured Pension (ASP) for clients aged 75 and over.

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

Criteria	Min/max	Details	Notes
Age Limits	USP – min age	55	If a lower retirement age has been agreed with HMRC, your client could take out a plan before age 55.
	USP – max age	74 (72 for new applications)	Once your client has a plan set up, there’s no maximum age for setting up new arrangements.
	ASP – min age	75	Your client can convert their USP to an ASP or transfer an existing ASP with another provider into our ASP.
	ASP – max age	95 (max age for transfers in)	No age limit for holding ASP.
Term	Min term	None	No minimum term for holding Income Drawdown.
Payment Limits (USP and ASP)	Min payment to start plan	£50,000	After taking tax-free cash or paying a Lifetime Allowance Charge.
Payment Limits (USP and ASP)	Min subsequent payments	£15,000	After taking tax-free cash or paying a Lifetime Allowance Charge.
Transfers (USP and ASP)	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 fund management and fund manager expense charges	Varies	Dependent on fund(s) selected Annual fund charge ranges from 0% - 1.70% Fund Manager Expense Charges vary from 0% - 0.90%

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	ASP USP

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 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 Are aged 75 and over (unless going into ASP) 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.
Key considerations	Possible alternatives
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.

Here are some examples of the support we offer you and your clients on our Income Drawdown plan.

Our online Pension tracker is a great way for your clients to monitor their pension more easily. With just a few clicks, they can

access detailed plan information.

Use our Budget planner and Pension calculator to demonstrate the value of advice to your clients.

We have a wide range of support staff available to help you, click here to find the right number that meets your needs.

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