Lack of guaranteed drawdown use now a perception issue - lang cat

Not 'raw cost'

Victoria McKeever
clock • 2 min read

Perception rather than 'raw cost' is a greater barrier to the use of guaranteed drawdown by advisers and clients planning a retirement income strategy, market analysis by the lang cat has suggested.

The consultant's report, How to get your money back: The UK Withdrawal Product Landscape, examines the structures of guaranteed income products, also known as guaranteed drawdown, looking at various past performance scenarios and future models to compare returns with drawdown, annuities and 'third-way' products.  The lang cat principal Mark Polson (pictured) said: "When we kicked off, it was with a reflexive ‘meh' - guarantees are expensive, and clients wouldn't go for them if they saw what they cost. After the exercise - we still think they're expensive, but once you get in and start do...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read
Baillie Gifford: Enjoying later life without an income from work

Baillie Gifford: Enjoying later life without an income from work

The latest from PA’ Digital Working Lunch webinar series

Professional Adviser
clock 12 December 2023 • 2 min read
Knowledge is power: How to help turn retirement dreams into reality

Knowledge is power: How to help turn retirement dreams into reality

Being on top of money is key to achieving retirement ambitions

Emma Barrow
clock 29 November 2023 • 6 min read