Financial information firm Defaqto has released a guide on balancing pension freedoms and risk in the modern advice world.
The paper, ‘Balancing pension freedoms and risk in the modern advice world’, published Monday (6 January), was written in conjunction with Canada Life to equip advisers with information and advice to help guide them on advising on pension freedoms.
Defaqto said the guide will help advisers to understand the retirement landscape by securing information on a range of products and solutions and the key aspects of regulation surrounding retirement strategy.
The first section of the guide evaluates the market landscape and summarises current legislation and the options available to clients upon retirement.
The second section then reviews Canada Life’s The Retirement Account – a pension and retirement solution designed to adapt to a client’s evolving needs. Defaqto said its guide also covers how Canada Life’s retirement account can be used to meet the needs of clients’ accumulating funds.
Defaqto insight consultant Andrew Duthie said: “With so much noise in the market, the retirement space can be difficult to navigate. 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.”
In October, 327,000 people accessed their retirement savings using pension freedom rules, withdrawing £2.4bn in the third quarter of the year, according to figures from HM Revenue & Customs (HMRC). Since pension freedoms were introduced in April 2015, roughly £30.74bn has been extracted from pension funds.