The guide, aimed at advisers and containing 60 minutes of CPD-accredited content, contains data designed to help advisers direct their clients through the drawdown process.
Specifically, the Professionals’ guide to drawdown 2019/20 aims to provide advisers with the tools to:
1. Design a compliant initial and ongoing due diligence process for drawdown
2. Explain the different retirement options
3. Evidence the suitability of a selected level of income or withdrawal
4. List the key issues in managing an effective drawdown strategy
5. List the risks associated with drawdown
6. List the death benefit options and understand how they impact on advice
Defaqto also underlined the vital importance of the advice process for clients seeking to drawdown from their pension savings.
Richard Hulbert, insight analyist (wealth) at Defaqto, said: “Drawdown has been a vital tool, allowing those in or approaching retirement to achieve often long-standing financial goals that would otherwise have been beyond their reach.
“It undoubtedly has a key role to play in providing a secure and comfortable retirement for millions of people, when used appropriately.
“This is why the role of regulated advice in the drawdown process is so important – advice allows clients to achieve their short-term goals while maintaining their long-term financial security throughout retirement.
“Particularly now, in a shifting market landscape where a diversified portfolio is needed, the role of advisers is more important than ever.
“This guide is designed to provide a structure, the data, and illustrations to help advisers provide compliant and suitable advice.
“This includes guidance on how to navigate the drawdown process by connecting income source to income needs, how to explain and manage the key risks of longevity, inflation, and sequence and how to evidence initial and ongoing suitability.
“As ever, the very popular due diligence advice checklist is included.”
Les Cameron, head of Technical at Prudential UK, added: “The mix of technical information and planning theory in this guide makes it really useful for those who are actively making retirement income recommendations at a time when drawdown is largely the norm.
“Of course, the most important thing to get really right is the investment strategy.
“This goes a large part of the way in determining whether or not people have a good drawdown journey.”