Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

GBST enhances drawdown options

by Emma Simon
June 26, 2019
UK-Currency-Money-Pound-GBP-620x430.jpg
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

GBST has upgraded its pension drawdown offering, enabling clients more flexibility about how they take an income in retirement.

GBST provides wealth administration software through its composer platform, and said these changes were in response to demand from the wealth management sector for more flexible drawdown options. 

The enhanced proposition offers a drip feed drawdown capability and additional income flexibility options. The new functionality extends the existing proposition which combines the certainty of an annuity and the flexibility of drawdown in one tax-advantaged wrapper.

The drip feed drawdown capability will allow customers to set up regular payments from their pension savings at a frequency of choice.

Payment can be split between tax-free cash (the pension commencement lump sum) and immediate income. For example, with a regular instruction to drawdown £4,000 each month, the investor can select to receive up to £1,000 tax-free cash and an immediate income of up to £3,000. Any amount not withdrawn as tax-free cash or income will be moved into the drawdown for investment.

Alternatively, the client can reduce the sum crystallised but still achieve the same income payment, for instance, they could elect to crystallise as little as £1,000 and draw £250 as PCLS with the remainder of £750 as income. 

This can provide an opportunity for future growth of the uncrystallised fund and potential for greater PCLS in future. In addition, with careful planning, this option can help ensure taxable income is kept within the basic rate tax band.

Additional income flexibility will enable investors to make one-off income requests online from an existing pension in drawdown.

Customers can select an immediate ad hoc income payment at the commencement of each drawdown prior to the funds being invested. Alternatively, customers can make one-off income requests online from an existing pension in drawdown.

GBST head of EMEA David Simpson says: “Through our platform, our clients can already support and administer different types of pension and savings products side-by-side. 

“The new functionality gives advisers and investors additional control over income payments, while continuing to enjoy the flexibility to blend pension investments, drawdown and guaranteed income — and change the combination as required to meet an individual’s evolving lifestyle and financial planning needs.”

VIDEO FROM ROYAL LONDON


Find out more about how to support the switching of a workplace pension

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Howden and Barnett Waddingham profile: Consolidation drive

  • Unum acquires renewal rights to Generali UK’s employee benefits business

  • EAPs under pressure

  • Mercer: The death of default retirement

  • Scottish Widows makes two appointments to IGC

  • Cash plan market continues to expand: CA Corporate Cash and Dental Plans Report

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.