Royal London has unveiled plans to launch a new service that enables advisers to review the drawdown plans of clients in its income release product.
The life assurer said that the online service, called Drawdown Governance Service, will act as an early warning to advisers that their clients might not be on track to meet their objectives.
It added that the service would ‘red flag’ any unexpected withdrawals for potential further investigation, and that details of the individual in question would be automatically prioritised on the adviser’s client review list.
The service also allows intermediaries to compare the projected and actual performance of individual drawdown plans, provides historical evidence of client reviews and helps advisers to meet their compliance requirements.
Fiona Tait, pensions specialist at Royal London, said: “For those customers that choose to use drawdown as their income-producing vehicle it is particularly important that they understand that their income needs to last into their ‘old age’.”
She added: “The new service will help to flag these issues, so an adviser doesn’t discover too late that a client’s underlying fund is no longer able to support his or her income objectives.”
David Lamb, partner and IFA at Northumberland-based Lamb & Associates Lifestyle Financial Planners, said: “The last thing you want is for a client to run out of money at retirement. Anything that helps to reduce this risk should be welcomed.”