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New drawdown rules may be delayed until 2012

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.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. advisers unable to meet the deadline?

    Why is that then?

    the changes ease the situation for advisers and why providers should find it problematic is also beyond me.

    Isn;t this just yet another case of people enjoying a good whinge at change.

  2. David Trenner - Intelligent Pensions 4th November 2010 at 4:46 pm

    Did you ever wonder why they made the temporary age for coming out of drawdown 77? It gives then until 2012 to get the new rules out.

    If they really believed they could hit 2011 they would only have gone to age 76.

  3. Doesn’t it make you wonder why in an age when technology has moved on at an amazing rate product providers are still unable to update their computer systems in anything less that 2 years?

  4. Let’s get the new rules clarified quickly to give clients some certainty at an age when they do not relish the words “maybe” and “it’s possible”. By all means leave enforced adoption of the new rules until 2012 for those useless providers who have no clue – perhaps funds going out the door to the providers who can get their ducks in a row will concentrate their narrow minds.

  5. Thess articles are odds with the one on Professional Pensions which says that the rules will be published on the 9th of December.

    http://www.professionalpensions.com/professional-pensions/news/1895198/govt-publish-annuitisation-plans-december

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