The Government could be forced to delay plans for a new drawdown regime until 2012 amid fears that providers and advisers are unable to meet the April 2011 deadline.
In this week’s Retirement Strategy, free with this issue of Money Marketing, Suffolk Life director of marketing John Moret (pictured) says the industry will come under “incredible strain” in the buildup to the April 2011 deadline.
He says: “The demands on advisers will be enormous. There is a possibility the Government could delay the introduction of these changes until 2012. With every week that passes, the capacity of the industry, particularly those providers with large legacy books, to cope with the introduction of these changes in April next year looks to be less likely.”
Aviva UK life and pensions chief executive Toby Strauss admits the company will be “scrambling around” to meet the deadline.
An ABI spokeswoman says the timescale will present a challenge to providers, particularly in updating literature and systems for capped drawdown beyond 75.