The new retirement option removes the requirement to buy an annuity at age 75 and means retirees are able to take an income from their investments directly, subject to a minimum income requirement of £20,000 per annum.
However, while some argue that forced annuitisation has been a major driver of the QROPS market, Guardian Wealth said otherwise.
“Speculation that the reforms will kill the Qrops market is wide of the mark,” said chief executive, David Howell. “In fact, it’s a different issue aimed at a different type of client. Cross border pensions are still in the early stages of a rapid growth phase.
“Even after April, UK rules are going to be more stringent than most other overseas jurisdictions so if people planning to live abroad have the opportunity to choose something better, then many will take it."
He added that the changes could even increase interest in the QROPS market among ‘mass affluent’ investors who will not have the size of pension needed to benefit fully from flexible drawdown.
“Flexible drawdown is now a known quantity that will suit some people but disappoint others,” he said. “There is not going to be another shake-up any time soon so all those disappointed with these rules are going to be looking for an alternative.”
