Aegon Adviser Attitudes Report 2021

Income withdrawal strategies – many opting not to take inflation protection We asked advisers about their retiring clients’ income withdrawal strategies. Most ( 30% ) said that no one strategy dominates but it’s perhaps a sign of the longstanding low inflationary environment that 29% are opting for fixed regular withdrawals with no inflation adjustment for most of their clients. This may become a problem if inflation increases significantly in the next few years as some are predicting. 27% said they tended to opt for variable regular or ad hoc withdrawals for most clients, allowing them the option to reduce or stop income altogether in times of market stress such as we saw at the start of last year’s lockdown. For pension drawdown clients, what income withdrawal strategy are you tending to use most with your retiring clients? Fixed regular withdrawal amounts, no inflation adjustment Fixed regular withdrawals, adjusted annually for inflation Variable regular withdrawals depending on di erent influences, such as fund performance Ad-hoc single withdrawals as required No one strategy dominates 4.5% 0 5 10 15 20 25 30 35 29% 14% 18% 9% 30% 27% of advisers believe Investment Pathways will lead to customers making poor decisions 50 Aegon adviser attitudes report 2021