A wide range of funds and online access without all of the costs associated with a full SIPP.
Here are some of the main features of our Income Drawdown plan.

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.
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.

Charges

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.
 

 

Commission

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.

 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.


Need any more information?


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.

 

WA04051 03/2011
For Adviser use only. This information has not been approved for use with customers.

Aviva Life Services UK Limited.
Registered in England No 2403746. 2 Rougier Street, York, YO90 1UU.
Aviva Life Services UK Limited is authorised and regulated by the Financial Services Authority. FSA Registration No 145452
www.aviva.co.uk