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

PCLS after age 75: Addressing a common misconception

PCLS after age 75: Addressing a common misconception

Pension legislation does not impose an upper age limit on the payment of PCLS

Caitlin Southall
clock 14 August 2026 • 4 min read
The AI ship has sailed and pension providers are still sitting on the shore

The AI ship has sailed and pension providers are still sitting on the shore

'The AI interface has arrived'

Jonathan Lister Parsons
clock 13 August 2026 • 6 min read
CRM integration project highlights AI-powered innovation potential

CRM integration project highlights AI-powered innovation potential

Project reflects a broader shift in adviser technology

Joe Power
clock 04 August 2026 • 3 min read