Small print: What the changes to drawdown mean for your clients

What the changes to drawdown mean for your clients

clock

Interim changes to capped and flexible drawdown add to the complexity of providing advice over the next 12 months. Scottish Widows' Sandra Hogg looks at what you need to know...

From April 2015, radical changes will apply to the way individuals access funds held in defined contribution pension schemes. Subject to consultation, once they reach age 55, people will be able to take 25% tax free cash and have fully flexible access to the balance subject to income tax at their own marginal rate. This should lead to a wider range of options for clients seeking a retirement income. Consequently, the interim changes to capped and flexible drawdown are likely to have a marginal real impact, despite adding to the complexity of providing advice over the next 12 months. C...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Everything advisers need to know about using a DB SSAS

Everything advisers need to know about using a DB SSAS

A DB SSAS operates using the regulatory framework as traditional DB pension arrangements

Caitlin Southall
clock 06 March 2026 • 4 min read
Pension transfer times got faster in 2025

Pension transfer times got faster in 2025

Transfer times took 10.2 days to complete on average, Origo finds

Jasmine Urquhart
clock 05 March 2026 • 1 min read
Ros Altmann urges govt to 'press pause' on 'rushed' salary sacrifice cap

Ros Altmann urges govt to 'press pause' on 'rushed' salary sacrifice cap

Peer says legislation ‘not clearly thought through’

Jonathan Stapleton
clock 03 March 2026 • 4 min read