Who is this box set for?
Anyone who is currently in drawdown.
The box set is perfect for sending to clients ahead of a drawdown review meeting. It reminds them what drawdown is and what they need to think about in order to get the maximum value from the review meeting with you.
The box set can also be used to attract new clients, for example, those in non-advised drawdown. Drawdown Review showcases the value of financial advice and the benefits of having a drawdown plan reviewed regularly.
About this box set:
The Money Alive Drawdown Review box set covers topics that the FCA considers important components of a good review process. It enables clients to view impartial, unbiased information that educates them on how a drawdown review could impact their retirement income. Covering key areas such as risk and tax, as well as scenarios such as death and running out of money, the box set offers a comprehensive explanation of drawdown reviews.
Money Alive began working on the Drawdown Review box set in 2019. This followed correspondence with the regulator and meetings with product providers and advisers, which unanimously suggested income in retirement was going to become a greater area of regulatory scrutiny. This was borne out by the arrival of the infamous ‘Dear CEO’ letters which expressed concern about the number of clients who had elected to take their income in retirement via drawdown. The letters detailed a suspicion of “adviser bias'' in the outcome as advisers receive an income stream from the drawdown options versus a one off payment from annuity. Using the box set gives advisers evidence they have made clients aware of all their options which is in line with the FCA’s thinking on Consumer Duty communications too.
In summary, the box set, combined with the record the platform produces for the adviser of the client’s engagement and understanding, gives the platform powerful compliance and risk management benefits. Furthermore, it creates review meeting ready clients and saves time.
More information on the box set chapters:
1. Disclaimer - 1 min
Important notice on inheritance tax changes.
2. Reviewing your drawdown pension - 2 mins
The importance of reviewing your drawdown pension and the important factors to consider. This chapter features pension expert Mark Thewlis.
3. Do I need to change anything? - 5 mins
Key factors to consider including your objectives, income & capital, risk, taxation, inflation and fund performance.
4. Are the risks still right for me? - 5 mins
Are you still comfortable with the risks you are taking and what alternatives do you have?
5. Tax - 4 mins
How is any income or lump sum you take from your drawdown pension taxed?
6. What will happen when I die? - 3 mins
The death benefits available from your drawdown pension, the options available to your beneficiaries, and the importance of keeping your wishes up to date.
7. What is the risk of me running out of money? - 5 mins
Understand the different risks you need to consider and the impact they could have. This chapter addresses a key concern of the FCA.
Additional Video
(which the viewer can choose to watch or skip)
As well as core learning the viewer has the option to select and watch an additional video. Viewing choices are reflected in the viewing report.
8. Challenging financial circumstances - 3 mins
How eligibility for means tested state benefits might influence someone’s decisions about taking money from their drawdown pension.
