Previewing the review for clients in SIPP Drawdown

Session: 9 June

With the introduction of pension freedoms and with it, the rising demand for DB transfers and DC consolidation, the last five years has seen low-cost SIPPs become even more popular with investors and advisers. The attraction of wider investment choice combined with increased flexibility has helped drive this demand, but with it a more complex advice process. With the recent market volatility, future uncertainty and changing client circumstances – coupled with ever changing regulation – is it time to simplify advice for retiring and retired individuals?

On this seminar we’ve teamed up with Brewin Dolphin and XPS Self Invested Pensions, and looked at what advisers should be considering when conducting client income drawdown reviews – challenging the thought process on the three critical questions of a review: Is it still meeting the client’s objectives and needs; Is the income still sustainable; Is the investment still suitable? We’ll also explore different investment techniques, products available and share best practice from the recent FCA finalised guidance on DB transfers, and what it could mean for drawdown advice.

Learning Outcomes – to demonstrate an understanding of:

  • Blending investment strategies for drawdown
  • Drawdown reviews
  • The lessons we can learn from the FCA DB guidance for drawdown advice
  • Whether it’s worth taking investment risk if close to or at the LTA? 
Featured Video

Previewing the review for clients in SIPP Drawdown

85 minutes View transcript

With the introduction of pension freedoms and with it, the rising demand for DB transfers and DC consolidation, the last five years has seen low-cost SIPPs become even more popular with investors and advisers.

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. In the PFS good practice guide one of the critical questions asked ‘Is the investment strategy still…?’

a. Flexible

b. Consistent

c. Sustainable

d. Performing

 

2. The FCA guidance on DB transfers suggests tiering the clients income into the following tiers?

a. Essential, lifestyle and discretionary

b. Emergency, lifestyle and discretionary

c. Non-discretionary and nice to have

d. Essential, discretionary and nice to have

 

3. Between 1999 and 2002 Gordon Brown instructed the sale of 60% of the UK’s Gold reserves, had he waited 10 years that would have been the financial impact?

a. He would have realised $5,500,000,000 more

b. He would have realised $7,500,000,000 more

c. He would have realised $12,500,000,000 more

d. He would have realised $15,500,000,000 more

 

4. If you had Toasted the dawn of the millennium by purchasing Diageo shares, what income yield would you have on the capital invested based on the 2020 dividend payments.

a. A yield of 10.3%

b. A yield of 11.3%

c. A yield of 12.3%

d. A yield of 13.3%

 

5. What is the longest maturity conventional UK Gilt in issuance?

a. 2069

b. 2071

c. 2073

d. 2075

 

6. What investment can be held in a SimplySIPP?

a. Cash only

b. PruTIP only

c. Brewin Dolphin DFM Account only

d. PruTIP, Brewin Dolphin DFM Account and cash on deposit

 

To claim your CPD certificate, click here.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.