Question: I have found that Income Drawdown is a complex area of retirement planning and isn't suitable for my clients. I am however open to change and I am keen to investigate further opportunities for my clients. Can the panel each tell me what the minimum amount of Investment they accept after any tax-free cash has been taken? What circumstances must my clients adhere to be suitable for an Income Drawdown plan from each of your companies?
Stewart Dick - Hornbuckle Mitchell
As noted in the question, and in previous answers, income drawdown certainly wont suit every client. However, there are many cases where income drawdown will suit the individual very well and we'd encourage advisers to review all the options available for each client - there is no 'one size fits all' solution for retirement planning.
With regard to the specific questions, we do not impose a minimum investment level on any of our SIPP plans, other than the need to retain £1,000 in the trustee bank account. We operate a flat fee structure for our products on the basic principle that whether a transaction has a value of £5,000 or £500,000 the level of work involved for us is the same. In keeping with Treating Customers Fairly we therefore don't apply tiered or percentage based charges.
Income drawdown is a standard feature of our SIPPs, so the only criteria a client would need to meet would be the £1,000 requirement noted above. Our transparent fees allow the adviser and client to decide for themselves whether or not the plan offers value for money, and the service and flexibility they require.
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