Six tips on UK pension reforms for financial advisers
2 Apr 15
A radical reform of the UK pension system gets underway this month allowing savers in defined contribution schemes much greater freedoms on how they can drawdown and utilise their money.
Help your clients understand and clarify their attitude to risk and capacity for loss (the two are often confused).
Make sure your clients understands why risk is a key discussion point and possible consequences – too little risk e.g. level annuities lock into current low yields with no flexibility or potential for income growth. Too much risk e.g. unprotected drawdown means they may run out of income if investment returns are volatile. Explore.
