View more on these topics

Royal London’s Drawdown Governance Service & the MPAA

Fiona Tait – Pensions Specialist, Royal London 

The DGS is more than just a pretty website, it can help you to target those clients who are most likely to be affected by the proposed cut in the Money Purchase Annual Allowance MPAA).

Clients who have triggered the MPAA

When it was launched Royal London automatically uploaded all drawdown clients who were currently taking income from their plan onto the DGS. This means you can assume that every client in Flexi-Access Drawdown (FAD) on the system will have triggered the MPAA.

The only exceptions are those who are:

  • Clients who are taking income within their GAD limit from a capped drawdown plan. These clients will be on the DGS will not have triggered the MPAA (should they exceed the GAD limit they will automatically convert to a FAD policy).
  • Clients who are not taking income but you have chosen to add to the system yourself. Clients who have never withdrawn income (i.e. in excess of 25% of the fund) will not have triggered the MPAA.

Clients who are still contributing to their pension plan

It gets better. The data held in the DGS allows you to specifically target those clients who have triggered the MPAA and are also currently contributing. While you will want to consider writing to all your drawdown clients these are the ones most likely to be affected by the MPAA cut.

All you need to do is bring up the list of your Royal London drawdown clients and click on the “more info” button on the right hand side of the screen. The data sheet that this opens contains a column regarding contributions; you can then set the criteria to identify those clients who are contributing and explain that they most likely have one last chance to contribute £10,000 before the change comes in, in April.

Of course this does only apply to those clients lucky enough to be with Royal London …

Further information

For more information about the proposed changes click below:


DB transfers – one more factor to consider

Jim Grant – Senior Product Insight & Technical Support Analyst We look at how higher DB transfer values could cause a lifetime allowance issue and how that affects the advice process. Advisers are receiving an increasing number of requests from clients looking to transfer their pension from final salary schemes to personal pensions. This is a […]

Treasury looks to address advice gap

By Jamie Clark, Business Development Manager, Royal London Hot on the heels of consultations on tax relief and pension transfers and early-exit charges comes a new investigation into the advice gap, and how this can be bridged. Ever since the new pensions freedoms were introduced, concerns have been raised about how people can get access […]

Managing customers in drawdown

By Lorna Blyth, Investment Marketing Manager Delivering a decent drawdown review process takes time and resources. This article looks at how you can manage drawdown clients in a more cost-effective way. Most advisers are seeing an increase in drawdown clients following pension freedoms. Often these are clients with lower fund sizes, which means advisers are […]


Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]


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