The current timescale for new income drawdown rules to come into effect will make no sense to advisers and their clients, according to A J Bell marketing director Billy Mackay.
Last week, the Treasury announced pensioners will be able to remain in income drawdown indefinitely, subject to regular reviews of their fund.
Pensioners will also be able to use flexible drawdown, in which they can withdraw any funds providing they also have a secure yearly income of £20,000.
However, Mackay says the government's decision to bring in a single date after which investors must move to the new system of drawdown, rather than a window of a few years, means many savers will be left in a confusing position.
"When the last major round of changes was introduced, the government recognised the need to be flexible over the exact review date and gave providers a two-year window to move all savers onto the new system," says Mackay.
"This time will see savers subject to the new limits immediately in some circumstances, not seeing any change for five years in others, and will even leave some having part of their pension subject to the old rules and part subject to the new.
"That does not make any sense to us and it will not make any sense to advisers and clients."
The review positions of people in various stages of accessing drawdown are shown in AJ Bell's table.
|1. Client crystallising benefits for first time in pension scheme||All benefits calculated under new rules|
|2. Periodic review of existing benefits in pension scheme with one drawdown arrangement||All benefits reviewed under new rules|
|3. Additional drawdown of funds in pension scheme to existing drawdown arrangement (where it takes place before 2)||New drawdown calculated, and existing drawdown reviewed under old rules|
|4. Periodic review of existing benefits in pension scheme with more than one drawdown arrangement||Reviewed drawdown calculated under new rules, old drawdown not reviewed and carries on under old rules|
|5. Additional drawdown of funds in pension scheme but to a new drawdown arrangement (where it take place before 2)||New drawdown is calculated under new rules. Existing drawdown is not immediately reviewed and carries on under old rules|
|6. Transfer of a drawdown arrangement to a new pension scheme with an existing drawdown arrangement||Transferred drawdown reviewed under new rules but existing drawdown arrangement carries on under old rules|
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