Advisers backing flexible drawdown
Contrary to industry speculation, AJ Bell's survey showed 98 per cent of 250 advisers surveyed believed they would use flexible drawdown, and more than 82 per cent said they would be using it as a tax planning income tool rather than exhausting their client's pension fund.
Billy Mackay, marketing director for AJ Bell, said: "Many of the views expressed across the industry have called into question the appetite for flexible drawdown. This survey demonstrates that there is significant appetite for it and that many advisers will be using it as a tool to carefully plan income to minimise the tax their clients pay.
"Rarely do you see such demand for a new pension concept, at odds with a lack of commitment from many of the traditional providers. You have got to ask the question whether some providers are basing their decision on whether to provide a product on profitability concerns rather than client and adviser need."
It comes amid changes to pension rules, scrapping compulsory annuitisation and introducing capped and flexible drawdown.