Adviser platform Novia has added new benefit crystallisation event and pension income functionality.

The ‘drip feed’ drawdown was developed in response to adviser demand, according to the platform.

It allows clients to keep their retirement savings invested and avoid the tax penalties that come with withdrawing lump sum payments.

Advisers can select a regular benefit crystallisation even on a client’s chosen date. The payment date can be set for regular income payments monthly, quarterly or annually.

Clients are able to take tax free cash up to 25% and designate the remainder to drawdown, choosing to take a full or partial amount immediately as taxable income or leave it in their drawdown account.

The tax-free lump sum not taken can remain invested and therefore potentially grow in line with the rest of the uncrystallised portion of their SIPP.

The new functionality comes as part of the latest round of updates from the adviser platform.

The platform has also introduced faster trade cycles, reducing the time out of market for client investments.

During a switch of an investment, instead of all sales being fully settled before purchases are placed, as soon as the contract note is issued for the final sell the switch or new asset purchase will be placed.

Barry Neilson, chief commercial officer at Novia, said: “Advisers told us these two enhancements were important to them and their clients, because they help create greater efficiency and flexibility. We listened and we acted.

“These are just the first enhancements in a series of planned developments responding to adviser demand.”

Novia is set to be combined with fellow Anacap-owned platform Wealthtime under the Wealthtime brand in the second half of this year.

Both Wealthtime and Novia were acquired by the private equity firm last year.

The combined platforms have over £11.8bn of pension and investment assets under administration for over 67,000 clients.

Anacap has already migrated the assets of another platform it acquired, Amber Financial, to Novia.

Novia has seen several high-level staff departures since its takeover by the private equity firm including CEO Bill Vasilieff shortly after the deal was completed.  

Novia was setup in 2008 and has assets under management of approximately £9.3bn.