Guardian Pensions Article

SonOf

Albermarle wrote: »

I thought phased flexi access drawdown was different to regular UFPLS as although you take a mixture of tax free and taxable, it does not have to be in the rigid 25:75 ratio necessary for a UFPLS?

Or are you saying that is just how it will show in the stats?

Terminology for phasing is fluid. However, I was really on about the stats not showing it.

Terron

SonOf wrote: »

The FCA data doesn't have enough detail to get an accurate picture. For example, last week I did a case for someone that had 5 pensions. Two are cashed in under small pots, one is taking the GAR and 2 are being consolidated to do drawdown. The stats will show the GAR and small pots as being non-advised despite them being advised. And as phased flexi access drawdown is being used, it wont show as drawdown (as that is a series of UFPLS - even though its set up regular)

Of my six pensions it is likely that only two would show up as advised. I talked to my advisor about all of them but handled taking four myself.

MK62

SonOf wrote: »

The problem is that it will be distorted by those taking a temporary high rate to fund the gap (intending to reduce later) and/or those with multiple schemes drawing on one at a higher rate whilst not looking at another.

Yep......I have three pensions, the two larger ones are untouched so won't appear in the figures, while the third is being/has been withdrawn via UFPLS at rapidly increasing percentages, year 1=25%, year 2=33%, year 3 (next tax year) will be 50% and the final withdrawal in year 4 will be 100%......
However, in terms of annual withdrawal vs total pensions, it's more like 3%, 3%, 3%, 3%......

It's only when you consider all the relevant info that a clearer picture is drawn......only considering the one pension in withdrawal completely distorts that picture......

It would be disappointing if the FCA were to base policy decisions on such flawed/incomplete data.....


PS it would seem that the FCA data linked only considers plans accessed for the first time, so mine would only have shown up for 18/19 (at a withdrawal rate of 25%), and presumably won't show up for 19/20 .......still distorts the picture though....

AnotherJoe

There was a similar discussion on another thread recently and yes I think one danger is such fundamentally flawed data being used as the basis of decision making especially by those with a bent to Nanny Statism telling us what to do with our money because they know best.
AFAIK every time I take out my £3,600 in one year that's another addition to the statistic of reckless pensioners splurging all their money in one go. It's almost impossible to see how you could even get good statistics on what's really happening, but as in my last company management were determined to manage on the basis of utterly flawed statistics, being mesmerised by numbers without understanding GIGO, ironic since the business was IT.
Same potential issue here, people with an axe to grind will start imposing restrictions using whatever junk data fits their case

SonOf

It does frustrate me how the regulator looks at pension funds.

If you have someone with £300k in an ISA or unwrapped, no-one bats an eyelid over how you draw your money or the method used or how much you take. Yet put that £300k in a pension and all sorts of hoops are introduced.

LHW99

There is also perhaps the issue that couples may manage their DC pensions between them, drawing from one preferentially while leaving the other to grow (as my OH / I plan),
So one pension will have a larger % drawdown, while the other presumably won't feature at all, suggesting an unsuitable rate that is actually about right when all the DC funds are included in the calculations.

jimi_man

Equally there may well be people who have saved into a SIPP and are using it, along with a DB pension which is the bulk of the pension provision, to bridge the gap between retirement and SPA as a means of retiring early. In my case I plan to run it down (if necessary) in less than 10 years.

AnotherJoe

jimi_man wrote: »

Equally there may well be people who have saved into a SIPP and are using it, along with a DB pension which is the bulk of the pension provision, to bridge the gap between retirement and SPA as a means of retiring early. In my case I plan to run it down (if necessary) in less than 10 years.

... and that behaviour will show you in the stats as a reckless foolhardy spendthrift.