IFAs have been told they need to be familiar with the flexible drawdown terms offered by their SIPP providers if they are to take advantage of the new income drawdown framework.
The 2011 Finance Bill comes into force today, allowing advisers to take advantage of more flexible drawdown arrangements.
According to a survey by Defaqto, 61% of SIPP providers are currently able to offer flexible drawdown terms, although 26% will not be offering this option from today.
Matt Ward, Defaqto's wealth management consultant, says: "While today's changes to the income drawdown framework present challenges to advisers, they also offer key opportunities for IFAs to secure client business.
"However, it is important for advisers to be aware of these changes and the associated planning ramifications for those clients approaching, or already in, retirement.
"In particular, when it comes to flexible drawdown, IFAs need to understand the terms being offered by SIPP providers in order to take advantage of the changes for their clients' benefit."
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