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Drawdown flexibility could kill off Sipps

Axa Sun Life is claiming a Government announcement allowing greater

income-drawdown flexibility will kill the self-invested personal pension.

It claims most Sipps are written to provide investment flexibility for

income-drawdown investors as a get-out clause for advisers if their initial

choice underperforms.

But it says investors rarely take advantage of this facility and in the

majority of cases, the flexibility of the Sipp is virt ually worthless.

Under the latest Government proposals, investors with personal pension

income-drawdown plans will be able to switch their funds to different


Axa Sun Life believes this puts a nail in the Sipp coffin. The company

recently launched the Retirement Solutions plan which is claimed to allow

investors to switch “seamlessly” between personal pensions, conventional

and with-profits annuities, phased retirement and drawdown.

Marketing manager Steve Muir says: “Sipps driven by the drawdown market

are dead because the conventional wisdom has been to use Sipps in case

there is a need to transfer from a drawdown provider.”

Sipp provider Pointon York senior technical consultant Eileen Imrie says:

“I take on board part of their argument but when a Sipp is done in a true

sense it provides much greater investment flexibility.”


LIA predicts stakeholder bonanza

The LIA believes IFAs could name their price for advising on stakeholderschemes.In an interview with Money Marketing, new president Peter Sprung saysthere will not be enough IFAs to meet demand when the stakeholder deadlinecomes around.Employers not wanting to use decision trees would pay for advice on top ofthe 1 per cent charge and IFAs could […]

Join the social club

Institutional shareholders own more than 80 per cent of UK corporateequity and the Government clearly recognises that fund managers haveconsiderable power to influence the behaviour of the companies in whichthey invest. It also believes that pension scheme members and ordinarysavers with the financial institutions would like to see such influenceused to advantage and to reflect […]

Drawdown service for IFAs

Retirement specialist Intelligent Pensions is setting up a monitoringservice for IFAs to review their clients&#39 existing income-drawdown plans.For a fee of 80 a year, the service will provide IFAs with quarterlyreports from Intelligent Pensions detailing the reasons for and againstbuying annuities for their clients&#39 drawdown plans.The reports analyse each fund link in the drawdown plan […]

ABN rethinks portfolios after roadshows

ABN Amro has refined and improved its managed portfolio service followingfeedback from IFAs on its recent nat^_ional roadshow tour.It is retaining its three basic portfolio disciplines of growth, balancedand income but will define the objective of each more clearly by referencetoa target portfolio yield.The target yield for growth will be less than 1 per cent, […]

Investment Forum

Position Portfolios for a Changing China, Accelerating Disruption and More Political Discourse Is China an asset class? Why Investors’ Understanding of China is Changing How is disruption changing the way we invest? Established Ways of Doing Business Are Being Challenged What to Watch: Why politics matters more than ever in 2017 Key takeaways: Despite volatile […]


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