Barnett Waddingham has confirmed today that it will offer the full range of pension income options ahead of April 6 this year.
From April 6 2015, our Flexible SIPP will offer the new pension benefit options, flexi-access drawdown (FAD) and uncrystallised fund pension lump sum (UFPLS), as well as further designations to existing capped drawdowns and conversion of capped drawdown to flexi-access drawdown.
Additionally, we will roll out added improvements in time for April including:
- immediate payment of ad hoc income and UFPLS
- a reduced fee for ad hoc income payments
- a second payment date per month for regular payroll income
We have decided to offer the full range of options. In practice it is very difficult to tell the difference between UFPLS and FAD where you take all the remaining fund as income at once, although I’m not convinced everyone will realise that. We have priced the options in a neutral way so everyone can focus on financial planning and not be distracted by fees.
The additional improvements will give SIPP members more flexible access to their pensions – exactly what freedom and choice in pensions is all about.