UK financial services provider Fidelity International has introduced a withdrawal facility, whereby its ISA and PEP holders can take out a fixed monthly or quarterly 'income' from their investments, whilet still enjoying all the benefits of ISA and PEP investment.
<p>The new facility is free of charge and said to be ideal for investors near or at retirement. Investors in growth funds without distributions can now opt for a regular fixed amount to be paid as capital withdrawal without forfeiting any of the tax benefits or encashing their whole investment. <br /><br />The service, available on unwrapped funds since August 2006, is being extended to all Fidelity funds ISA and PEPs, in addition to other providers' funds registered on FundsNetwork. <br /><br />We expect more investors to want an income from their savings as they approach retirement. Holders of growth funds no longer need to sell or switch to another product just because they want a regular income, commented Richard Wastcoat, UK managing director at Fidelity International. This facility gives investors greater flexibility and, with longevity increasing, could be ideal for those who want to keep their savings invested in the stock market during retirement.<br /><br />Other features of the withdrawal plan include a minimum withdrawal amount of GBP50 per fund but no maximum, a minimum holding in a fund set at GBP1,000, and the option for investors to stop and start the plan at any point.</p>