6th April 2011

Defaqto: 61% of SIPP providers currently offering flexible drawdown

A survey by independent financial research company Defaqto has found that 61% of SIPP providers are currently able to offer flexible drawdown terms - and advisers need to be aware of the terms on offer if they, and they clients, are to take advantage of today's changes to the income drawdown framework.

The 2011 Finance Bill, which comes into force today, will affect all future drawdown pension arrangements. In particular, advisers will be able to take advantage of the provisions allowing more flexible drawdown arrangements. However, Defaqto's survey of SIPP providers found that while the majority are now in a position to offer flexible drawdown, 26% will not be offering this option from today.

Matt Ward, Defaqto's Wealth Management Consultant, said:
"While today's changes to the income drawdown framework present challenges to advisers, they also offer key opportunities for IFAs to secure client business. However, it is important for advisers to be aware of these changes and the associated planning ramifications for those clients approaching, or already in, retirement. In particular, when it comes to flexible drawdown, IFAs need to understand the terms being offered by SIPP providers in order to take advantage of the changes for their clients' benefit."

Matt Ward's full commentary on today's key changes to income drawdown, and the main implications and opportunities for advisers, is available on Defaqto's website.
In addition, based on its survey of the SIPP market, to help

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