View more on these topics

Retirees maintain drawdown rate despite market volatility

Miniature man and woman sitting on a bench beside the coins and banknotesMore than half of retirees have not decreased their rate of drawdown as a result of global market volatility, Aegon research shows.

FCA data showed in September 2018 that those taking regular sums from drawdown (or uncrystallised funds pension lump sum) policies have increased their rate of withdrawal from 4.7 per cent in 2016-17 to 5.8 per cent in 2017-18.

The survey by the Aegon UK consumer panel asked 650 adults of retirement age about markets in November 2018. When asked whether they have reduced their exposure to equities in the past 12 months, 58 per cent said they have not.

Meanwhile, 43 per cent of surveyed retirees said they are concerned about the impact current market conditions could have on their retirement income sustainability, while 67 our cent are not planning to take any action and leaving their money where it is.

Advisers shunned as DIY pension withdrawals highest since freedoms

Just one in ten retirees (11 per cent) are reassessing their current investment strategies in order to diversify.

Aegon investment director Nick Dixon says the current downturn will undoubtedly test the nerves of retired investors: “It is positive to see that overall retirees aren’t phased by current market conditions, but this shouldn’t turn into complacency.

“Retired investors would be wise to reassess their pensions, with the help of a financial adviser, to consider the amount of money they are taking out of their pension pot and ensure their investments are diversified enough.”



National IFA cuts network ties to go DA

National IFA Continuum Financial Services has decided to cut ties with the Caerus network to become directly authorised. The 38-adviser firm says that with assets under influence set to exceed £1bn in the next 18 months, it has opted to go directly authorised so it can have greater flexibility over its client and adviser proposition. […]


How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]


Which financial services names have made the Rich List?

Peter Hargreaves has jumped to 42nd position on the Sunday Times Rich List, a climb of nine places from last year, after seeing his wealth grow £849m to £3.2bn. Hargreaves is no longer on the Hargreaves Lansdown board but has kept a 32.2 per cent stake in the company – the value of which has […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. If the market drops a bit further we will soon see the complaints roll in when holders are told to take less income. Pension freedoms always were (for those with less than £500k) a car crash waiting to happen.

    • I agree. The principal problem (as I see it) is setting income at a fixed level as opposed to either natural income or a percentage of the value of the fund.

      Having started out with £5,000 p.a. against a fund of £100K (which is pushing it from the word go), the fund slips in value by 10% and that £5,000 p.a. becomes 5.55% p.a. That’s definitely into capital erosion territory and a further fall accelerates the process still further.

      Any IDD plan that cannot accommodate either natural income or a percentage of the value of the fund is to be studiously avoided.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm