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Drawdown Strategies, Modelling Tools and Consumer Communication

Prior to pension freedoms virtually all retirees, with a defined contribution (DC) pension, used their savings to buy annuities to provide themselves with a retirement income. Only a small number of wealthy (often financially sophisticated) retirees used income drawdown. There were rules governing the amount of income that could be taken, a requirement for regular reviews and access to advisers. Capped drawdown, as it is now known, ceased for new retirees after April 2015. Drawdown has now become the most popular option for accessing pension savings with nearly three times as many new drawdown accounts being than set up as annuities purchased since October 2015.

A consequence of the sudden way in which pension freedoms were announced in the 2014 Budget and introduced in 2015 is that a supporting regulatory environment was not in place and remains, for the most part, inadequate for the challenges consumers now face when making potentially life changing financial decisions.

Objectives:

  • To be an ongoing working party and act as a source of knowledge and expertise within the Institute and Faculty of Actuaries (IFoA) on drawdown.
  • To initiate proposals and respond to consultations on regulatory change
  • To review existing strategies for managing drawdown for income and the tools currently available
  • To recommend best practices for:
  • managing income drawdown
  • considering the option and timing of annuity purchase
  • consumer communications
  • To publish papers/presentations covering current practice and working party’s recommendations. The first paper or presentation to be released by the end of June 2020.
  • To present findings and results at IFoA and industry conferences.

 

Chair: Tim Jablonski
Members: 5
Established: 2019

 

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Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

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  • Spaces available

    A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.

    This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.

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    Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.

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    How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more.

  • The Growth Mindset for Actuaries

    13 October 2021 - 8 December 2021

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    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

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    The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.

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    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.