drawdown

PP looks at why good drawdown solutions must 'remember the members'

Drawdown products must be designed around member engagement as investment solutions "cannot be a panacea", according to RBS head of group pensions Carol Young.

Asset price volatility means pensioners on drawdown could suffer annual income drops of up to 50% which could hit living standards, warns the International Longevity Centre-UK (ILC-UK).

Providers have said a charge cap on income drawdown, as proposed by Labour leader Ed Miliband, is "unnecessary" and a "solution to a problem that does not even exist".

Providers who have cut drawdown charges in the run-up to April 6 to "grab market share" will revisit their decisions in the months to come, suggested LV=.

Michael Johnson has proposed that retirees are defaulted into drawdown after research by PP found little support for his original call for a default option of index-linked annuities.

A labour government would act quickly to cap charges on retirement income products according to party leader Ed Miliband.

A drawdown charge cap should be placed on sales to provider's existing customers to ensure people are not sold inappropriate products after pensions freedom comes into effect, Which? has said.

Fidelity has extended its defined contribution (DC) platform to give customers access to incoming retirement flexibilities but warned that operational capability alone will not ensure the policy is successful.

Aegon UK posted a 37% increase in earnings in Q4 last year, citing increased demand for income drawdown on its platform.