The FCA, followed by the Work and Pensions Committee, see default drawdowns as the way forward. They believe that lower charges will offset the absence of any maximum income limit to minimise the risk of the state being hit with a future benefits crisis – I don’t believe it.
Just a few years ago, the regulator frowned on drawdown, and the economic realities have not changed since then. It’s simple: the only default retirement option should be personalised guidance or even advice. Let’s offer customers free robo advice and a near-retirement consultation – and it is up to policymakers to work out how that is funded.
Feature first seen in Professional Adviser on 31/05/2018
