Drawdown demand will burgeon in 2015
Damian covers a prediction from Standard Life that Drawdown is set to increase from 6% to 30% after the April 2015 pension reforms are implemented.
Steve Patterson, MD at Intelligent Penisons commented:
“A five-fold increase is quite a big number, but it is from a relatively low base in proportion to annuities, so I wouldn’t be surprised if that level of rebalancing is about correct.
I think people will wish to have the opportunity to disconnect the annuity purchase from their retirement and that will enable people to time annuity purchases when the market conditions are more favourable and when rates are better at an older age.”
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