The pension drawdown product from Legal & General is claimed to have a simple, single, service charge of 0.25% regardless of the fund size
New pension drawdown product launched by Legal & General. (Credit: Legal & General Group Plc)
Legal & General Retail Retirement (LGRR), the retail retirement unit of British financial services provider Legal & General, has rolled out a pension drawdown product for helping consumers manage their drawdown income.
The unit of Legal & General claimed that the new product makes managing drawdown income as simple as possible for people aged over 55 years who want to do it themselves.
Dubbed as Legal & General Personal Pension Drawdown, the product is said to be an early adopter of the investment pathways of the UK Financial Conduct Authority. The new product has been designed to enable consumers to pick from a choice of four simple investment solutions.
Each of the pathways is aligned to a separate fund, suited to various drawdown goals, said Legal & General.
Before launching the pension drawdown product, Legal & General is said to have worked with a panel of over 30 customers to make sure that at all stages of its use, the portal and customer communications were easy and simple to understand.
The product is claimed to have a simple, single, service charge of 0.25% regardless of the fund size, while charges for fund management are in the 0.14-0.31% range based on the investment pathway selected.
Legal & General said that the pension drawdown product can be applied for and managed online and a self-service portal has been made available to enable customers to monitor how their money is performing.
Furthermore, the new product provides alerts if an individual changes his or her drawdown habits, or begins withdrawing money too quickly. This is because customers can fall short of money if they withdraw too much, their investment returns would not meet their expectations, or they have a longer life than expected, said Legal & General.
LGRR management comments on the new pension drawdown product
Legal & General Retail Retirement Income managing director Emma Byron said: “In an uncertain investment environment people might consider splitting their pension pots to combine the potential investment benefits and flexibility of drawdown with the guaranteed income of annuities.
“We want to offer customers the option to access their pension flexibly, with the ability to choose from a range of retirement income options. In essence, we’re providing our customers with a selection of straightforward, simple to select investment pathways that, together with the right support and tools, should give them more confidence in managing their money.”