Small print: What the changes to drawdown mean for your clients

What the changes to drawdown mean for your clients

clock

Interim changes to capped and flexible drawdown add to the complexity of providing advice over the next 12 months. Scottish Widows' Sandra Hogg looks at what you need to know...

From April 2015, radical changes will apply to the way individuals access funds held in defined contribution pension schemes. Subject to consultation, once they reach age 55, people will be able to take 25% tax free cash and have fully flexible access to the balance subject to income tax at their own marginal rate. This should lead to a wider range of options for clients seeking a retirement income. Consequently, the interim changes to capped and flexible drawdown are likely to have a marginal real impact, despite adding to the complexity of providing advice over the next 12 months. C...

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 Pensions

State pension nears tax threshold – how can the government fix it?

State pension nears tax threshold – how can the government fix it?

'While policy change would be welcome, individual action is just as crucial'

Laura Suter
clock 06 May 2025 • 4 min read
A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

Transfer delays highlight need for ten-day Pension Switch Guarantee

Sahar Nazir
clock 29 April 2025 • 2 min read
Sipps: How clients can avoid common retirement planning mistakes

Sipps: How clients can avoid common retirement planning mistakes

'Retirement planning stands as a cornerstone of long-term financial well-being'

James Floyd
clock 28 April 2025 • 4 min read