Pictured: Paul Whitehouse in the recent Aviva commercials

Aviva – the brand formerly known as Norwich Union – is to offer more options for the way that customers draw an income in retirement.

The company today launched its ‘phased drawdown’ option on its wrap and self invested personal pension (SIPP) platforms, allowing customers to draw a regular income using a combination of taxable income and their tax-free cash entitlement, so they can control the level of taxable income they receive in retirement.

Anthony Rafferty, director of individual accumulation at Aviva, said the provider decided to enhance its product offering because the rules around retirement are changing significantly.

He explained, ‘We know the shape of retirement is changing, with many people working for longer and retiring gradually.

‘Aviva can now offer its customers a new tax-efficient, flexible retirement income option that can adapt with them as their needs change.

‘As it is built online, we don't have to restrict the investments customers can use or charge them extra for using phased drawdown. This further strengthens the Aviva range of retirement solutions on offer.’

Aviva's phased drawdown option has an online system that calculates the minimum amount needed to move into drawdown each month, ensuring as much as possible remains ‘uncrystallised', which could be paid to beneficiaries as an IHT-free lump sum should the investor die before the age of 75.

Aimed at customers with pension assets in excess of £50,000, the phased drawdown option allows individuals the flexibility to manage income levels on an on-going basis, with the ability to adjust their income to their changing needs.

Aviva claims to be the only provider to offer a fully automated, online monthly phased drawdown service across its full Sipp fund range.