The following press comment has been distributed to our trade and national press contacts this morning following the FCA’s publication of the terms of reference of its Retirement Outcomes Review.

The terms of reference state the review will also look at non-advised customer journeys and notes that “there are also now higher numbers of consumers entering income drawdown products without use of a regulated adviser. [Figure 4 shows that] for the period October to December 2015, 32% of reported drawdown sales were not associated with a regulated adviser. In the Retirement Income Market Study, we noted that in 2013, 97% of new income drawdown sales were sold through advice services.”

Jon GreerJon Greer, pensions technical expert at wealth manager Old Mutual Wealth, comments:

“Non-advised drawdown is a relatively new phenomenon. Before the pension freedoms were introduced in April 2015 there was effectively no such thing, and a customer also needed to have a secure retirement income from other sources before they could even consider the type of drawdown flexibility on offer today. As the rules have changed it is entirely right that the FCA is looking at how customers come to their decision to take their retirement income in this way.

“Drawdown can be a very tax-efficient method of securing a retirement income, provided customers choose the most appropriate strategy for their needs and circumstances.

“The new normal for retirement income is about choice and it is vitally important that customers understand their choices before they make them. We firmly believe that receiving full professional financial advice is the best way to achieve this. Our research with YouGov shows that 60% of those aged 50-75 who have never seen an adviser suggest they have little or no understanding of drawdown. This falls to 38% if the respondent saw a financial adviser to plan their retirement.

“40% of those who have never seen an adviser state they have no understanding of drawdown at all. This figure is more than halved (18%) if they saw an adviser.”



For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145

Notes to Editors:

Old Mutual Wealth

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £127.3 billion in customer investments (as at 30 June 2017).

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 (as at 31 December 2016) million customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Old Mutual Wealth Management Limited, a Private Limited Company (Company Number 0604270), Old Mutual House Portland Terrace Southampton Hampshire SO14 7EJ.