View more on these topics

Drawdown drawbacks

Client fund size is the main barrier to recommending drawdown to clients, according to a GE Life survey conducted in association with Money Marketing.

Thirty per cent of advisers say small funds puts them off drawdown, with 20 per cent citing client concerns over uncertainty over future income and 8 per cent seeing the option as being poor value.

Eight per cent say difficulties explaining the product to clients is the main barrier to recommending it to clients, while 7 per cent say complexity of income limits and reviews is the biggest deterrent. Twenty-eight per cent say there are no real barriers to recommending drawdown.

The most important feature of drawdown for 22 per cent of respondents is the ability to continue drawdown beyond age 75 via alternatively secured pension after A-Day. For 21 per cent, the lack of a minimum income limit is the most important feature while 18 per cent are most drawn by more investment freedom after A-Day.

GE Life product manager for drawdown Ray Chinn says: “What is interesting is that most IFAs feel there are no real barriers to recommending drawdown. Our concern from an advice perspec- tive is that time is limited with less than a year to go before the new rules take effect. IFAs need to do their homework and start talking to their cli- ents now.”

Need An director Jo Roberts says: “It is very hard at the moment to know what you can and can’t do. Clients generally don’t seem to understand it. It needs to be simple and pension simplification is not simple.”


F&C builds Japanese equity team

F&C Asset Management has poached Adrian Hickey from Shell Pensions Management Services to bolster its Japanese equity team.Hickey, who joins as director of Japanese equities, will report into the group’s head of Pacific Basin equities, Mike Hanbury-Williams.Hickey has previously worked for Edinburgh Fund Managers, Commerz International Capital Management in Tokyo and Scottish Equitable.

Fee fie

Our panel discuss whether recent hikes in fund charges can be justified and predict where value will come from in the next 12 months.

All or nothing

Philip Scott looks at rise and fall of the giant UK All Companies sector.


News and expert analysis straight to your inbox

Sign up


    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