Scheme Pension - the alternative to an annuity?

Posted: 03/10/2011 16:29:55 by Global Administrator | with 0 comments

With annuity rates declining and GAD rates hitting an all time low this month, interest abounds in Scheme Pension as an alternative.

However, a word of warning!

There is no industry defined procedure for the setting of Scheme Pension and however tempting it may be to select the Provider who is assuming the highest expected level of return, if those returns are not met the client will see a reducing income, or worse still, run out of money.

When the regulator comes calling I suspect it will be reviewing the degree of suitability in selecting the expected rate of return used by the Provider and accepted by the Adviser when determining if a client has been misinformed.