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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.”


Abbey National cuts 500 jobs

Abbey National has announced plans to 500 jobs throughout its 780 national branches.At the same time the high street bank confirmed plans to add 400 jobs to offset the planned dismissals. Those who are among the 500 who will be made redundant will be invited to apply for the new positions.A spokesperson with Abbey National […]

Shake-up at Misys strengthens expansion of networks

Super-network and software giant Misys has made a ser ies of managementchanges aimed at consolidating expansion of its IFA networks.It says the changes will provide a platform for future development.A number of the appointments are at the recently formed Misys IFA Serviceswhich is designed to supp ort the company&#39s networks Countrywide, FinancialOptions Group and Kestrel.Misys […]

Boutiques are in style fashion

The trend of big-name managers jumping ship to join either a smallinvestment house or to start their own firms is is now firmly establishedin the UK.The phenomenon of boutiques began in the US about 10 years ago andboutiques now springing up in the UK.In the last couple of years, Japan specialist Ed Merner left Schroder […]

Tesco PF switches from Widows to CGU

CGU is to buy Tesco Personal Finance Life for an undisclosed sum, ending the supermarket&#39s joint venture with Scottish Widows. Tesco Personal Finance, the banking joint venture with Royal Bank of Scotland, continues. Tesco Personal Finance Life, the life and pensions joint venture, has been bought by CGU in its entirety. CGU has now formed […]


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