Pension and investment provider Aegon is introducing cash 'ringfencing' during the pension and SIPP retirement journey to simplify and optimise the process of withdrawing funds.

It said the new feature would enhance the adviser experience and help avoid ‘foreseeable harm.’

The feature is available through the Aegon Retirement Choices (ARC) and One Retirement platforms.

Aegon said the introduction of cash ringfencing supports the Consumer Duty’s ‘foreseeable harm’ principle.

It allows users to allocate cash from the proceeds of a sale to fund SIPP tax-free cash, regular income from SIPP drawdown, GIA or ISA, or platform, advice and DFM fees.

Aegon has also introduced a pension income reliability feature. It should ensure that clients will receive their regular drawdown income as expected, even if sell transactions have not yet settled.

Stephen Crosbie, managing director of adviser platform at Aegon, said: "Following our Strategy Teach-In in June 2024, we remain committed to enhancing the core functionality of our platform and delivering an exceptional experience.

“We understand the importance of receiving payments on time. That’s why we’ve developed these improved measures to protect payments of regular income and drawdown, which ultimately help avoid foreseeable harm.”

He said that removing barriers will allow a smoother interaction with Aegon’s platform and help advisers to provide optimal service to clients.

He said the enhancements “are just the beginning. We're dedicated to excellence and are working hard to ensure our platform works hand in hand with the needs of advisers. Watch out for more updates, there's plenty ahead as we continue on our transformation journey."