Our new consumer drawdown solution, the Personal Pension Drawdown
We’ve launched our new Personal Pension Drawdown, which is a simplified drawdown solution for consumers who are not currently accessing financial advice. It aims to help take some of the complexity out of making decisions about where to invest in drawdown and incorporates the FCA’s upcoming regulations on investment pathways.
The FCA’s Retirement Outcomes Review has highlighted that since pension freedoms, many consumers go into drawdown in order to access their tax-free cash and a significant number of consumers that are not taking advice are likely to be holding their drawdown savings in investments that will not meet their needs1. The report tells us:
- More than 60% of consumers not taking advice were not sure or only had a broad idea of where their money was invested.
- 1/3 of consumers who are in drawdown and not taking advice are holding funds entirely in cash.
- Over half of these consumers are at risk of losing out by holding cash.
- Consumers who hold funds in cash could generate an income from their pension pot that’s up to 37% higher over 20 years by moving to a mix of assets.
Our new Personal Pension Drawdown has been developed based on consumer testing. It aims to help take some of the complexity out of making decisions about where to invest in drawdown.
The importance of seeking financial advice
Retirement has radically changed. Your clients need more support than ever to help them navigate their choices and make more informed decisions. We want to help people lead longer, healthier, happier lives and believe that everyone should be able to have a ‘more colourful retirement’.
We believe that advice is an essential component in achieving this.
However, there are a number of consumers who are not accessing financial advice. The proportion of people entering drawdown without advice has risen from 5% before the freedoms to 30%1.
Our new Personal Pension Drawdown aims to support these consumers who choose to enter drawdown without financial advice. Our Personal Pension Drawdown simplifies some of the decisions consumers need to make and helps them to access their pension in a flexible way.
Visit our consumer product pages to find out more about our new Personal Pension Drawdown.