04 April 2011
The Financial Times is reporting that some pension providers
will not be offering the flexible drawdown option until later this
New legislation, which is due to come into force this Wednesday,
will permit people who meet the new flexible drawdown requirements
to claim their unsecured pension benefits as lump sum payments.
To view the new rules and requirements for flexible drawdown click here
However some providers have confirmed to the Financial Times
that they will not be offering this facility until the draft
legislation has received Royal Assent, which is expected to be in
Richard Mattison of James Hay, a self-invested personal pension
"We plan to offer flexible drawdown, but will only do so when we
are absolutely certain that the government will not go back on the
"It is a small probability but there is still a chance that if
the law is not given Royal Assent that individuals who take all
their funds could be faced with an unauthorised borrowing
Hornbuckle Mitchell have also confirmed that they will be
holding off until the Rules have received Royal Assent and have
stated that they will not offer flexible drawdown until the third
Not all providers have taken this view and Robert Graves of
Rowanmoor said "We will not stand in a member's way if they request
this from next week,"
Billy Mackay of AJ Bell said:
"You would only delay delivery if you thought that the
consultation/legislative process was heading in a direction that
put flexible drawdown at risk. This is simply not the case."
People looking into the flexible drawdown option should consider
obtaining financial advice before proceeding.