Capacity crunch: Will platforms struggle with pension freedom?

Capacity crunch for platforms?

One provider has sounded alarm bells on a platform ‘capacity crunch' in the wake of pension freedoms. Jenna Towler finds out how platforms plan to keep up with drawdown demand

Standard Life is working on the basis that it will see a fivefold increase in demand for drawdown when pension freedoms kick in from April. The insurer predicts about 30% of retirees will opt for drawdown, compared to just 7% today. Many of these will fall below the traditional £100,000 viability limit and could be non-advised, which bring its own set of separate challenges. A fivefold increase in demand for drawdown, advised and non-advised, will no doubt be a challenge for advisers and platforms alike. Standard Life head of adviser platform propositions David Tiller says platform...