Yes. There will be no changes to the amount or frequency of income payments for clients who are taking regular withdrawals or pension income.
Clients who currently receive income funded by distributions on their ISA or CIA, otherwise known as natural income, will see some changes to the timings of their income payments, meaning that they are likely to receive their income quicker. This is because interest and dividends will be paid as and when they are received from the fund manager, rather than being ‘rolled up’ and paid as a larger amount, which may mean your clients receive more frequent income payments. Alternatively, your client has the option to change to fixed, regular withdrawals either on a monetary of percentage basis.
These clients may also receive an income payment shortly after migration in respect of distributions received prior to migration but not yet paid.
Where clients currently receive income based on a set amount or percentage basis, and it was previously funded by deduction from the largest fund or specific funds held inside of a model portfolio, this will now be funded by proportional deduction of units across your clients’ assets.
For further information on withdrawals read our article on flexible withdrawals.