Independent financial information and technology provider Defaqto has published a guide to help advisers with the drawdown process.
‘Using drawdown to provide a suitable income’ is CPD-accredited and provides research tools and compliant recommendations to planners working in this space.
The document, which was created in partnership with Royal London, is split into two parts.
The first half covers the advice process, while the second part focuses on retirement support and solutions offered to advisers.
Defaqto said that covid-19 created “the perfect storm of falling capital values combined with income drying up due to dividend suspensions and reductions, creating a greater need for advisers to sharpen their focus on risk and sustainability”.
Tailoring is key
David Cartwright, head of insight and consulting (wealth & protection) at Defaqto, said: “We may be living through unprecedented times, but thoroughly explaining and assessing risk has always been key for an adviser to provide suitable advice.
“Many clients, currently in or approaching drawdown, will be feeling vulnerable and advisers should keep in mind that the attraction of a strategy more tailored to providing a sustainable income for life may become the overriding need.
“Our latest CPD guide, created in partnership with Royal London, looks to arm advisers with an in-depth understanding of how to provide suitable advice that results in sustainable income.
“Not only by giving a detailed explanation of how to review risk but also how to tailor the approach to both accumulation and decumulation.”
