Flexible drawdown in the spotlight

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Stewart Dick looks at some of the factors contributing to a rise in use of flexible drawdown.

It is perhaps not surprising that the widely predicted boom in flexible drawdown has failed to materialise so far. A 50% top rate of income tax, a lack of interest from the big providers and a wait-and-see attitude from some clients and advisers have all combined to turn the much-trumpeted arrival of flexible drawdown into something of a damp squib. So why are providers now beginning to detect a change of heart, manifested both in an increase in clients preparing to switch from capped drawdown, and from SIPP and personal pension investors looking to crystallise straight into flexible ...

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