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Prudential plans non-advised drawdown launch

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Prudential is to enter the non-advised drawdown market this autumn, Money Marketing understands.

To date the firm is one of several providers who decided not to allow customers to open drawdown policies without an adviser.

In July Money Marketing revealed how providers were offering the pension freedoms to customers.

Legal & General opted out for fear customers would make poor decisions, saying drawdown was “not a straightforward product for consumers who are not taking advice to use”.

Aegon also requires customers to take advice.

Earlier today a spokesman said: “Pensions can be complex and require customers to make decisions about investments, how much income to take and how long their savings might need to last.

“We are still working through our offer and will launch when we are confident it will meet customer needs.”

However, last week Money Marketing reported how Standard Life and Scottish Widows have seen sales of direct drawdown boom.

Standard Life said its proposition – which is based around three investment pots – was its fastest selling product ever.

Providers have lost billions in recent years as the pension reforms saw annuity sales slashed, while the charge cap on default auto-enrolment fund has drastically reduced revenue.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. At least the Pru has sufficient resources available to manage the raft of complaints waiting in the sidelines as more and more policyholders make the wrong decisions.
    Income drawdown is very complex, and all investors need professional advice before making such an important decision.

  2. How long before the complaints start to roll in?.

  3. Will the Pru accept non advised drawdown from us yet?
    does any one out there know of a provider who will accept non advised drawdown from an IFA

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