Editor’s comment of the week: Avoid default options and make clients choose
Investors who are currently being defaulted into annuities suddenly being defaulted into drawdown will surely be the next misselling scandal, without the sell.
Providers really need to avoid any default options, which would force clients to at least make a decision or receive nothing.
There is no time limit for providers to force clients into an income producing product, assuming they have updated their scheme rules accordingly, which is another issue entirely.
Although the Budget reforms will not necessarily engage consumers fully, they will encourage people to seek advice or at least guidance. There is more to retirement planning than just pension funds and how much tax-free cash they can get their hands on.