APRIL 2021


Register with PP

Newsletter, Jobs & Event Alerts


Defaqto launches guide to balancing pensions freedoms and risk

7 January 2020

Financial information firm Defaqto has published a new guide too help advice firms advising on the pension freedoms.

The guide, Balancing pension freedoms and risk in the modern advice world, written in conjunction with Canada Life, is designed to provide advisers with information and advice following the recent raft of regulatory changes.

Defaqto said the guide will help advisers to understand the key aspects of regulation surrounding retirement income strategies, the range of solutions in existence, the various risks and how different retirement choices and income options meet differing customer needs.

The guide is split into two parts; the first looks at the current market, legislation and the options available to clients upon retirement. The second section reviews The Retirement Account from Canada Life and how it could be used to meet the needs of clients accumulating funds, consolidating pension monies and/or looking to take benefits.

Andrew Duthie, insight consultant, Defaqto, said: “The financial advice landscape is constantly evolving and advisers are facing multiple challenges from a regulatory perspective. With so much noise in the market, the retirement space can be difficult to navigate. With the pivotal role that advisers have, it is key that they take the time to understand new products launching in the retirement space in their entirety.

“This guide aims to help advisers understand how they can best ensure they’ve applied a duty of care to their clients, researching the entire market, as well as considering the benefits of the type of structure applied by Canada Life.”

Andrew Tully, technical director, Canada Life, said: “The pension freedoms opened up the retirement market to new ways of thinking, and it’s been recognised that there has been a lack of product innovation in the market by way of response.

“So it’s really good to see a guide from Defaqto which places the spotlight on both the challenges advisers and their clients face balancing the various risks in managing retirement income strategies.”

Professional Paraplanner