Advisers forced to find drawdown alternatives

Jenna Towler
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Nine out of ten advisers report clients using income drawdown are worried about their income potentially falling by as much as 55%, a poll has found.

Research from annuity specialist MGM Advantage said a ‘perfect retirement storm' had forced advisers to reassess the suitability income drawdown for many clients. Alternative strategies include exiting drawdown using investment-linked annuities (61%) and topping up the drawdown pot from other savings (38%). Phasing an exit from drawdown using annuities accounted for 24% of advisers, while only 19% said their clients were happy to accept the income fall in the hope that markets recover. More than half (52%) of advisers said the top priority for clients was to preserve income. Fal...

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