In this week's Retirement Planner news round-up we highlight five key stories you might have missed over the past seven days.
Demand for drawdown is likely to increase by a factor of five when retirement freedoms kick-in, causing a market ‘capacity crunch', Standard Life has warned.
It predicts about 30% of retirees will opt for drawdown income, compared to 6% of retirees today.
Class of '93
Legal & General Assurance Society (L&G) has been directed to compensate two clients it advised to transfer savings out of their employer's pension arrangements 21 years ago.
The Financial Ombudsman Service found the provider had failed to alert both clients to the danger of losing pension value following the transfer.
Can you handle it?
The Pensions Advisory Service (TPAS) is trialling a financial capability tool to help prepare for its future role as a provider of free guidance to savers.
The helpline is already offering the online assessment tool on a trial basis to build up its experience of consumers and help them to understand their own financial capabilities
Taking a hit
Legal & General (L&G) has reported record bulk annuity numbers which it said had "more than offset" a 61% drop in sales of traditional annuity policies since the Budget reforms were announced.
Its third quarter interim statement said overall annuity assets were up 16% to £39.9bn compared to £34.5bn in the same quarter last year. It added total annuity sales were up 5% to £3.9bn representing net flows of £2.3bn.
Supply and demand
Demand for annuities climbed 10.5% in September despite tumbling rates, analysis from IRESS has found.
The firm's latest At Retirement Report analysed data from more than 150,000 advised sales and found demand for single life annuity products was up just over 10% in September compared to August.
‘In the know’
Owen to pay £3m
Lasting power of attorney
Three risk profiles
Caused by falling oil price