Pensioners may be forced to move drawdown provider as many are behind legislative changes, says Hargreaves Lansdown.
According to the IFA, many providers have not updated their systems in the wake of drawdown reforms implemented in April. Some do not want to compete for new businesses while others have simply been too slow to react to change.
This has left many 74 year olds frustrated and in urgent need of a new provider. If not they may find themselves forced to purchase an annuity - something the rule change was brought in to prevent.
Despite the upheaval for investors, Hargreaves Lansdown pension investment manager Laith Khalaf says there could be benefits, as plans may have been taken out decades ago and may no longer be suitable for the client.
"You could save a huge amount by transferring to a cheaper provider," he says.
He added, regardless of the urgency: "People need to review drawdown investments, not everyone will want to use the new flexible rules. It's important for each individual to look at the service, cost and functionality of their plan."
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