Scottish Life has launched a series of technical information leaflets on income drawdown to help IFAs advise clients on whether the pension option is suitable.
The pensions specialist arm of Royal London said the leaflets highlight issues and potential risks IFAs need to consider when recommending income drawdown.
Available from the Scottish Life website, topics covered include: critical yield, what factors trigger a recalculation of max GAD income, calculating max GAD income and PCLS recycling.
Death benefits from crystallised and uncrystallised funds, income drawdown and the advice process, building investment portfolios for drawdown and comparing retirement benefit options, are also covered by the leaflets. They can be accessed from www.scottishlife.co.uk/incomerelease.
Keith MacPherson, head of individual business at Scottish Life, says income drawdown is a particularly complex area of financial planning with the pros and cons requiring careful consideration before any decision is made.
“Financial advisers need a full understanding of options available and of their clients’ personal circumstances before they can make a recommendation. These leaflets have been designed to help provide answers to the technical queries surrounding income drawdown that we are frequently asked by IFAs.”IFAonline
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