Centralised Retirement Propositions and prescribed procedures using Drawdown to take benefits

Just wondering if anyone works to a prescribed set of procedures for advising on/reviewing Clients who are drawing benefits by Drawdown? Wondering if anyone uses flowcharts or decision tree type internal guidance or rules or what do you work with and what outcomes are considered and affected?

thanks in advance

Comments

  • richallumrichallum Administrator

    Hi @Northface I'll let others add their thoughts but wanted to let you know that we're doing an online Howwow on CRPs in a couple of months and I'll add this question to the mix.

    Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.

  • cheers Rich.

  • parawhatparawhat Member

    Hi @Northface. Yes, we have a prescribed CRP process, which covers drawdown reviews, but it's more about the high level process advisers need to follow to try and ensure they're collecting the additional KYC needed and having (and documenting) the right type of conversations with the clients. Really, I'd say a good CRP/drawdown process is down to equal amounts process and education. It's so important the advisers understand _why _you're asking them to, say, get annuity quotes for comparison rather than them just doing it as a tick box exercise.

    In a nutshell, our process consists of the following:

    1. Supplementary fact finds to make sure we gather additional KYC required e.g. clients thoughts on secure vs unsecure income, full breakdown of essential vs desired income etc.
    2. Use of cashflow planning
    3. Consideration of strategies such as cash buffers etc to manage sequence risk etc. There's no right answer in this space and more down to indivdual client objectives, risk profile, but we suggest to advisers a good starting point is to consider 2 to 3 year income in a cash buffer. The important point is to discuss with client and document discussions in meeting notes.
    4. Obtain medically underwritten annuity quotes and discuss with client. There are exceptions where this is not required e.g. very wealthy individuals where pension is never going to be touched and therefore intergenerational asset.
    5. Use of a Withdrawal Policy Statement.

    I haven't done a flowchart for our CRP process yet, but we have it for other processes so I will probably will when I get chance!

    Jonny (paraflex)
  • NorthfaceNorthface Member

    good stuff, we are doing it just have to formalise it. agree that its partly internal education.

  • Hi @Northface,

    Happy to share our CRP if that's helpful. Email [email protected]

  • RcaisleyRcaisley Member

    @ChrisHindle1 said:
    Hi @Northface,

    Happy to share our CRP if that's helpful. Email [email protected]

    Hi Chris, would you mind sharing this with me, please? [email protected]

    Also, does anybody else use 7IM Retirement Income Service for larger pension portfolios or for clients with multiple investments? We find it a fantastic service that is working very well with a range of investment options also available.

    For all clients who are in decumulation, we are holding at least 1 year worth of income in 'cash' within the portfolio.

    In terms of reviewing clients in decumulation, we are using TimeLine App to check income sustainability scores (brilliant piece of software), updating cashflow plans, getting fresh annuity quotes, and running Selectapension retirement income strategies report as well as all the generic things like checking risk, performance etc.

  • NorthfaceNorthface Member

    @ChrisHindle1 said:
    Hi @Northface,
    Hi Chris

    please email [email protected]

    much obliged
    Thanks

  • I've had various requests for the CRP mentioned above. Apologies to those who I haven't got back to you.

    I've attached a copy for all to see. Please use as you see fit. Certainly not the finished article, but hopefully food for thought.

    Any feedback welcome.

  • @ChrisHindle1 said:
    I've had various requests for the CRP mentioned above. Apologies to those who I haven't got back to you.

    I've attached a copy for all to see. Please use as you see fit. Certainly not the finished article, but hopefully food for thought.

    Any feedback welcome.

    Thanks Chris, very much appreciated.

  • amarshallamarshall Member, Moderator

    Thanks for sharing @Chris_Hindle1

    We're in the process of updating our drawdown review process and I was wondering if anyone had one they might like to share. Thanks in advance!

  • HelenNBHelenNB Member

    Great CRP webinar just now, is anyone happy to share their Withdrawal Policy Statement template or worked example?

  • @Chris_Hindle1 said:
    I've had various requests for the CRP mentioned above. Apologies to those who I haven't got back to you.

    I've attached a copy for all to see. Please use as you see fit. Certainly not the finished article, but hopefully food for thought.

    Any feedback welcome.

    Thanks for this- just found it whilst looking on here for something else- great to see what others are doing :-)

  • Here's an example withdrawal policy statement that I've tweaked and added to over the years. I think it originally started out based on a Vanguard example. Hopefully you'll get the idea and remember there's no right answer with these, just what you think works best for your firm/advisers.

    Jonny (paraflex)
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