Defined Contribution  

Default pathways will not work for all

A word of caution: remember the scorn that is now poured on fund managers who charge for active management but turn out to be ‘closet trackers’.

IFAs that charge for decumulation advice and then recommend solutions similar to the new default pathways would be in the same camp.

IFAs must not lose sight of the fact that default pathways will not work for everyone. The fact that 63 per cent of drawdown policy purchases are already fully advised, speaks for itself. 

Adrian Boulding is director of retirement strategy at Dunstan Thomas