View more on these topics

Skandia defends drawdown deals

Most income-drawdown investors are no worse off than people who took out an annuity at the same time, despite stockmarket falls, according to Skandia.

The company says many investors have benefited from high levels of income while maintaining the level of their initial capital over three years and six years.

It is urging IFAs to check the relative performance of drawdown clients against those who have taken an annuity and not be put off drawdown by falling markets and low annuity rates.

But some IFAs argue that advisers should pay more attention to the servicing of drawdown clients and warn that failure to maintain portfolios properly is putting retirement funds at risk.

Skandia marketing manager Peter Jordan says: “There is an awful lot of negativity attributed to income drawdown based on supposition. But if you look at the other features that come with drawdown, such as death benefits, clients generally believe their returns are reasonably balanced.

“Many commentators are saying equities look good value and there is far less potential downside on annuity rates for drawdown clients than there was a few years ago, so the case for drawdown is as good as it ever has been.”

Intelligent Pensions director Steve Patterson says: “Income drawdown is not a product that you sell and walk away from. There is a big back-end issue of clients not getting yearly strategy reviews and three-monthly asset monitoring.”

Chartwell pensions adviser Gemma Bryer says: “You have to consider the death benefits and flexibility of income and not just the performance. You can always use cash and gilt funds in drawdown.”


Healthsure – Futures

Monday, 19 August 2002 Type: Healthcare cash plan Minimum premium: Level one – £7 a month, £84 a year, level two – £22 a month, £264 a year Minimum-maximum ages: 16-65 Maximum benefit: Level one &#45 health screening £150, specialist consultations £150, x-rays/scans £100, eyesight test £25, level two &#45 health screening £450, GP consultation […]

AMP offering 13 funds on child savings plan

AMP is broadening its product range with its first child savings product. The plan will be sold primarily through the tied salesforce. It was developed after feedback from its advisers showed a demand for a savings product tailored for children. The product has 13 fund options within an Oeic structure, including socially responsible investment. Minimum […]

B&B boosted by distribution

Bradford & Bingley got a big boost from its distribution business which more than doubled profits in the first half of this year. B&B&#39s distribution arm, which includes the MarketPlace and Charcol operations, saw profits surge by 258 per cent to £14.7m from £4.1m in the first half of last year. Group profits rose by […]

MLP cuts full-year profit forecast

German IFA giant MLP which has 40 RIs in London, have revised its full year profit forecasts after recently published half-year results revealed investigations into the company&#39s accounting practices &#39caused great unrest&#39. Allegations of creative accounting by a German online magazine in May and a subsequent raid of its head office by the German public […]


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