Asset manager BlackRock has taken advantage of pension law changes in the UK to give retirees an alternative to an annuity income at retirement.
The BlackRock Retirement Income Account allows members of BlackRock workplace pension schemes to select regular or ad-hoc income payments.
It is BlackRock’s first offering for people at retirement beyond more traditional funds.
Payments are made by selling units in the funds held by the account holder and drawing down capital over time. By remaining invested, account holders will be able to vary income to suit their needs and also retain the potential for future capital growth.
It is the latest addition to BlackRock’s pension products that include LifePath Retirement funds, LifePath Capital funds and LifePath Flexi funds unveiled in light of government reforms of the pension market.
BlackRock recently announced it would replace its target-date funds in the UK defined contribution market.
Paul Bucksey, head of UK defined contribution at BlackRock says: “The new pensions freedoms offer people choice and that is why we are trying to help clarify the options available to scheme members. We want to simplify the process for both accumulating wealth for retirement, and also accessing funds in retirement.”
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