IFAs warned over drawdown

Following the censure of GD Tancred Financial Services for not clearly explaining and documenting the risks of income drawdown to customers with small pension pots, Rowanmoor has warned IFAs they could be held liable if they fail to ensure clients who use drawdown have a sustainable level of income. Those who use drawdown, which is taken from an individual’s total pension pot, could find their income is reduced by over 50pc. This is due to erosion of the capital value of the funds if income levels exceed the return of the underlying investments, with retired people who live longer at par...