M&G Prudential is closing its drawdown product, the Flexible Retirement Plan, to new business from advisers, the provider has announced.
From 17 September 2018 no more top-up contributions or transfers into the Flexible Retirement Plan will be accepted by the provider.
A spokesman for Prudential said IFAs have been kept in the loop about the closure.
‘Advisers and customers are being informed of this decision, and existing customers will still be able to continue paying existing regular contributions,’ he said.
‘Customers who want to move into income drawdown can talk to their advisers and switch into the Prudential Retirement Account. It was launched in 2016 on a new administration platform and is a more flexible product offering a greater range of features.’
Last summer New Model Adviser® revealed the Prudential Retirement Account had been hit by administrative issues, which led to clients being offered redress.
Despite these issues, a spokesman for the provider said the Prudential Retirement Account now accounts for 90% of new business sales for Pru.
The older product, the Flexible Retirement Plan, was launched in 2005 and the pension was opened to the PruFund range in 2008/09.