PensionBee, a UK-based fintech pension provider, has rolled out a non-advised drawdown service within the PensionBee Personal Pension to allow people to safely and efficiently access their pension at one place.
The launch of the new service comes after an FCA announcement made in April this year, whereby the regulator decided to carry out a thematic review into non-advised drawdown sales. The review is due to report by the final quarter of 2017-18.
The pension manager said that the new drawdown product will enable investors to combine multiple pots into one online pension account, which in turn will enable customers to enjoy full transparency over their pension fund and withdraw their money, if the need arises.
The new service, which will be available to customers before they turn 55, allows them to withdraw their 25% tax-free lump sum or another amount.
PensionBee CEO Romi Savova said: “We have become increasingly concerned that some savers are simply drawing down their pensions and putting them into their bank account so that they feel the money is theirs.
“This can result in an overpayment of tax, which is easily avoided by simply giving customers more visibility over their money. We think savers are more likely to focus on better long-term outcomes if they feel control over their pensions.”
The Pensionbee drawdown service will automatically calculate the tax due on a withdrawal and show risk warnings to protect customers.
Over the longer-term, PensionBee’s drawdown product will serve as a bank account, with savers easily drawing down lump sums as the need arises.