For the second year running, platform consultancy the Lang Cat has conducted an analysis of how well platforms are performing at delivering income to clients in the new retirement landscape. The Lang Cat analysed 14 of the UK’s leading advised platforms, accounting for 90% of advised assets under administration. While the report was commissioned by Zurich, the analysis and opinions are the Lang Cat’s alone.
Overall, the Lang Cat found that many platforms are still not fully geared up to deliver flexible income to consumers in retirement...
- Just six of the 14 platforms allow clients to receive income on almost any day of the month they choose. This means consumers are restricted to taking income on days that suit their platform, not them.
- Just four platforms offer pre-funding on income withdrawals. Consumers will get their money back slower from platforms that don’t offer pre-funding on lump sum withdrawals, which could mean a wait of more than a week compared to those that do.
- Only two out of 14 providers offer consolidated income payments from across all tax wrappers. In the new retirement world, clients are taking income from a variety of different tax wrappers, such as their ISA or drawdown account. Without a means to deliver a single combined payment, clients could have multiple sums landing in their bank account on different dates, making it harder to keep track of their day-to-day finances.
Take a look at the report here...