Introducing ongoing adviser charges on drawdown
More and more people are choosing income drawdown as their method of choice for funding their retirement. Advisers expend considerable effort in researching the best options for their clients, and naturally want to help them choose pension providers and schemes which will offer them long-term satisfaction.
At Aviva, we believe that advisers who help their clients to choose retirement options they’re happy with deserve to be rewarded… on an ongoing basis.
For this reason, we’re introducing ongoing charging on drawdown. This is a major development for advisers who have clients considering moving into drawdown and those who have existing drawdown pots. The charges can be applied to drawdown pots already in place, where the customer is not accessing tax-free cash or as part of the process to access tax-free cash. This applies to the following products:
- Company Pension (PPP00UK, policy prefix TK) – Active or Delinked.
- Aviva Personal Pension (CSYPS01, policy prefix TL).
- Some policies under Your Pension@Aviva (YPSNU00), policy prefix 8 or PS)*.
*Any YPSNU00 policy that historically had a CAFCA charge type applied cannot have an adviser charge added in income drawdown.
This change means that you can now request to apply an ongoing adviser charge for these accounts at any time, rather than only being able to select an initial adviser charge at the same time as first designation to income drawdown.
How ongoing adviser charging will work:
- Unlike the initial charge, which is paid as a one-off monetary amount, ongoing charges are paid as a percentage per annum against the value of the income drawdown funds.
- The charges agreed are calculated and paid on a monthly basis as a percentage of total income drawdown fund value. These values can be agreed in 0.01% steps.
- We can apply an ongoing adviser charge from any remaining accumulation funds and income drawdown funds independently, so long as they are paid into the same adviser firm.
- You can specify a start date for an ongoing charge, which can be in the future- but you need to be aware that ongoing adviser charges cannot be backdated.
- These charges don’t automatically replace any existing adviser charges paid on the accumulation funds. You need to set them up as a new arrangement between adviser and client.
The guides below provide full details of the adviser charge types available to these pension products:
- Adviser charging options available for Company Pension
- Adviser charging options for Personal Pension/Your Pension
How to apply for ongoing adviser charging
When you’ve agreed your client requirements and the amount of charge to be paid, call Aviva on 0800 145 5744 for Company Pension, 0800 068 6800 for Personal Pension/Your Pension, or email us at firstname.lastname@example.org.
- We’ll check relevant details and prepare a quote
- Review the quote with your client. They will then sign an agreement form and return it to us.
- We’ll process the application and make payments
- You’ll receive a confirmation letter
We’ll be pleased to answer any questions you have about adviser charging or explain how it works in more detail.