BlackRock, the world’s largest asset manager, launches its Retirement Income Account
Members of the 195 occupational pension schemes managed by BlackRock will be able to make monthly, quarterly, half-yearly, annual and even ad-hoc withdrawals by selling units in their funds, following the world’s largest asset manager’s launch of its Retirement Income Account.
The move comes in the wake of the relaxation of rules governing Britain’s retirement finances system, as well as savers’ growing wish to remain invested as they enter retirement.
Withdrawals must be of a minimum of £100 before tax, and a maximum of 12 one-off payments a year can be made, but there are no set-up, transaction or exit fees – just an annual management charge.
The annual management charge will vary depending on customers’ choice of investments (customers can create their own bespoke portfolio, choosing from around 100 alternative investment funds managed by BlackRock and other investment managers).
“We have seen a raft of new fund launches within the industry to cater to new pension freedoms, but we believe this innovation provides our members with a simple, flexible and cost-effective way of moving from the accumulation phase of workplace pension saving to decumulation,’ said BlackRock’s head of UK defined contribution Paul Bucksey.
“The new pension freedoms have broken the shackles of traditional annuities and we think this new service is a leap forward for our members.”