UK - Hornbuckle Mitchell Trustees has designed a SIPP that makes it "much easier" for advisers to use the product for income drawdown.
The product – claimed to be the first of its kind – overcomes the problems faced by people using SIPPs for income drawdown by making sure they do not run out of money in retirement.
Until now advisers have had to retain two years’ income in the SIPP cash account and then invest the remainder elsewhere – placing a burden on the manager to disinvest money to keep the cash account topped up.
But the SIPP from Hornbuckle Mitchell utilises “risk profiling and asset allocation tools” to ensure the holder has the right portfolio – also making sure that the portfolio is rebalanced every year to make sure the holder never runs out of cash.
Hornbuckle Mitchell Trustees managing director Mark Stubbs explained: “Although the majority of advisers realise that using a SIPP for income drawdown is good advice, many are reluctant to do so due to the fact that they then have to manage the cash within a SIPP to ensure that their client does not run out of income.”
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