Over two-thirds (70%) of respondents confirmed they would use Flexible access drawdown for their clients to provide a level, regular income, after taking the all available tax free cash as a lump sum.
This was further confirmed by 73% of advisers stating that they would be unlikely to recommend income increases over the current GAD limit for investors already in capped drawdown.
Advisers also expressed limited support for the new Uncrystallised Fund Pension Lump Sum (UFPLS) with fewer than 30% thinking it likely they’d recommend it for their clients.
Advisers welcomed the introduction of a new annual allowance for clients in flexible access drawdown, although the majority thought they’d be unlikely to use it. 70% of advisers confirmed that fewer than a quarter of their clients would be likely to continue to make contributions whilst drawing income.
Greg Kingston, Head of Marketing and Proposition at Suffolk Life, says:
“The new rules for pension income post April 2015 bring a bewildering array of choices for advisers and their clients, but at this stage it appears that demand for some of them is relatively limited. Part of that may be due to very few providers to date being willing to confirm what options they will support. That makes it very difficult for advisers to select a provider today in anticipation of making the options open to their client next April.”
