With pension drawdowns increasing, half-yearly reviews could become the norm

02 Jan 2019

Pension savers are looking to have more frequent drawdown reviews with their financial adviser, according to research conducted for insurance, savings and pensions provider Zurich.

YouGov surveyed 660 adults whose pension is in drawdown, including 276 for whom paid advice is their main support for managing their pension. Of these, more than a third (38%) want their adviser to carry out a review of their drawdown plan at least every six months, instead of annually.

Half (53%) of advised consumers said they would ideally like to meet their adviser once a year to discuss their drawdown plan. But almost a third (31%) would prefer a meeting every six months, while 6% said every three months, and 1% more frequently still.

"Consumers clearly value the role of advice in drawdown and the reassurance they receive from regular reviews with their adviser," commented Alistair Wilson, Zurich's head of retail platform strategy.

"In the future half-yearly reviews could become the norm, especially as defined benefit schemes decline, and people rely more than ever on drawdown for their retirement income.

"It's positive that consumers are keen to engage with advice, and as more people move into drawdown, advisers are likely to face growing pressure on their time.

"This may mean advisers need to adjust how they work as they look to balance the demands of supporting existing customers, while continuing to develop their business."

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