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Defaqto and Prudential publish guide to drawdown

18 April 2018

Financial information group Defaqto has teamed up with Prudential to launch its 2018-19 guide to drawdown.

With pension freedoms thrusting drawdown into the spotlight, Defaqto said its structured guide provides advisers with all they need to know when advising on drawdown.

The guide explains the death benefit options and their impact on advice, outlines the different retirement options and how to evidence the suitability of a selected level of income or withdrawal.

In addition, it offers knowledge around the issues in managing an effective drawdown strategy, the risks associated with drawdown solutions and includes a due diligence checklist for recommending a drawdown solution.

Defaqto said one of the main issues with drawdown is advisers’ failure to show the suitability of their strategy, which suggests they may not understand the implications of their decisions.

It added that the guide would assist advisers and paraplanners in helping their clients to avoid the common drawdown pitfalls, including: tax on withdrawals, tax on contributions, tax on savings, lost capital, lost income, and lost partner’s income.

David cartwright, head of insight for wealth and protection, Defaqto, said: “Get just one element of the advice process slightly wrong and there is the potential for advisers to destroy the standard of living for clients and their partner for the rest of their lives.

“Having a defined process, which they follow without fail, will help advisers identify the common pitfalls and issues, while ensuring advice remains suitable and compliant.”

The guide is accredited by the CII/PFS and CISI for up to 60 minutes of structured CPD.

Defaqto subscribers can download a copy of the full guide from this link: https://defaqto.com/advisers/publications/professionals-guide-to-drawdown-201819/


Professional Paraplanner