View more on these topics

IFAs have just days to lock clients into GAD

IFAs face a race against time if they want to lock clients into the 120 per cent GAD income rates for the next five years, according to Suffolk Life.

Treasury reforms ending compulsory annuitisation come into force in just six days time. Under the new rules, investors entering drawdown for the first time from April 6 will have their maximum income calculated using 100 per cent of the Government Actuary’s Department rate.

Providers often split pension pots into units, with each unit representing a fraction of the total fund. Suffolk Life, for example, splits its plans into 1,000 units.

Pensions technical manager Claire Brooks says clients could only need to crystallise one of those units to secure 120 per cent GAD rate for five years.

She says: “There are still opportunities for advisers to help their clients. If a client wants to take benefits now while in the process of moving providers, it may be possible to crystallise just one unit.

“Depending on the way in which the provider admin- isters partially drawn plans, this could mean that as they crystallise further units, the limits will be recalculated using the 120 per cent of GAD rate instead of 100 per cent of GAD.”

AJ Bell marketing director Billy MacKay says: “If you have got any clients that are likely to require income in the coming five years and that income requirement is likely to be at or near the maximum, then why wouldn’t you give them the added flexibility of income planning up to 120 per cent?”



Can advisers afford to shun investment trusts?

Investment trusts have had their fair share of critics over the years and have struggled to win over advisers and retail investors. One of the criticisms is they are of a bygone age although one old warhorse, it would seem, has proved many critics there is life in them yet. Witan is finally back on […]

Balls says sorry for Labour’s bank errors

Labour Shadow Chancellor Ed Balls has apologised for his failings and those of the Labour party in the run-up to the financial crash, saying they should have been more stringent in regulating the banks. In his Budget response broadcast, Balls dismissed Conservative claims that the deficit is down to wasteful spending by Labour, instead blaming […]

GDP revisions could delay rate rise, says LSR

The Bank of England may be less likely to raise interest rates in May because of revisions to last year’s GDP figures, according to Lombard Street Research. Yesterday, the Office for National Statistics said that GDP growth in Britain fell by 0.5 per cent in the final quarter of 2010, rather than the previously estimated […]


MP calls for regulation moratorium to apply to IFAs

An MP has called for the Government’s regulation moratorium on businesses employing fewer than 10 people to be applied to small IFAs with regard to the retail distribution review. The moratorium was announced by Chancellor George Osborne in his Budget statement last week and exempts all businesses employing fewer than ten people and all genuine […]

Pensions - thumbnail

Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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