In this edition of Behind the Headlines, we examine the rise of non-advised drawdown, the different approaches providers are taking when it comes to flexible pension access, and the implications of these for advisers and their clients.
Last week, Money Marketing revealed how Standard Life’s new non-advised drawdown product is its “fastest-selling solution ever”.
Providers such as Scottish Widows and Aviva have launched similar propositions as customers seek flexible ways to access their their pension pots but shy away from the perceived high cost of advice.
Speaking to Money Marketing pensions reporter Sam Brodbeck, Standard Life head of pensions strategy Jamie Jenkins defends the firm’s product and says providers’ reluctance to enter the direct market means they risk missing out.
He also notes the criticism levelled at providers for unfairly blocking customers’ access to freedoms by insisting on advice, thus leaving them exposed through non-advised products.
Jenkins predicts the FCA will introduce tighter regulations for direct products and tips robo-advice as a possible solution to the lack of mass market advice.