Prudential Announces New Retirement Account



Posted on: 4th October 2016

Prudential has released details of an interesting new product called the ‘Retirement Account’, designed to be of mutual benefit for pension savers and financial advisors alike. Hailed by its creators as the pension for today’s generation, the account focuses on ease of access, enhanced control and total flexibility. For the financial advisor, the Prudential Retirement Account allows for management of the client’s saving account and withdrawals through a single account, which combines a drawdown plan and personal pension.

The decision to develop the account stems from the growing trend among financial advisers to use technology to optimise and enhance their businesses. In order to meet growing demand, the Prudential Retirement Account features extensive online accessibility and functionality, in order to ensure that the client’s accounts can be handled in direct accordance with their goals and intentions – even if they happen to change a number of times along the way.

One Account for All Elements

What sets the Prudential Retirement Account apart from any comparable products launched to date is the way in which it brings all elements together in a single account. Whether the client is taking an income, saving from retirement or swapping from one to the other, they will have a single integrated account where everything is centralised. All transaction details are recorded and logged in one place, making it easier than ever to keep an eye on all payments and other activity within the accounts.

The Prudential Retirement Account is comprised of two primary components, designed to make it as easy and convenient as possible for both financial advisers and clients to manage. These are:

1 – Pension Savings Account

The Savings Account enables clients to build their pension pots in a manner that’s convenient and tax-efficient. From the age of 55 and onwards, they will have the option of withdrawing some or all of the money paid into the account as income/Uncrystallised Fund Pension Lump Sum (UFPLS). A high degree of flexibility provides clients with total control, along with the option of when and in what quantities funds can be shifted to their Pension Income Account.

2 – Pension Income Account

After reaching age 55, the client may decide that they want to take out the maximum tax-free sum of cash possible, but will not require any additional income. In such instances, they will have the option of using the Pension Income Account to leave the rest of the funds where they are and build them through investments. Alternatively, clients may also choose to take income at regular intervals and a tax-free lump sum, while ensuring their savings are handled in the most tax-efficient way possible. With the Pension Income Account, there are multiple possibilities.

Extensive Investment Choice

The company is also highlighting the benefit of extensive investment choice for those choosing the Prudential Retirement Account. These include the provider’s own in-house multi-asset funds, capital and income guarantee options and a range of external funds.

For full details of the new account and its key benefits for clients and advisors alike, visit the official overview page at: