RP quick poll: retirement income

This week's Retirement Planner quick-fire poll asks: Do you believe the onus should be on SIPP providers to ensure investors meet flexible drawdown requirements?

Click HERE to give your view

Almost a fifth (18%) of those who answered the question thought the decision had taken away an important product from the client.

However, almost three quarters (73%) said that while the decision was disappointing there are other alternatives available.

The remaining participants believed the decision would have no effect on the equity release market.

Ian Atkinson, IFA at Retirement Solutions believes that while the decision to withdraw the product is disappointing it will open the gateway for more providers to enter the market.

"In the short term this is bad news for the industry and pensioners as it limits product choice in the post-retirement mortgage market," he says. "However, it will have a positive long term effect as it will encourage traditional equity release lenders to launch new products as they feel able to compete with the Halifax out of the picture."

Simon Chalk, a later life planner at Later Living said that the product: "certainly had a place at the table, most noticeably for wealthier retirees able to comfortably afford interest payments, or for borrowing of a more temporary nature such as bridging between moves, semi-retirement periods, etc."

However, he added that "one major positive about the exit of RHP, is that the product was widely miss-sold (often unwittingly) by advisers without equity release experience or qualifications."

Last week's result (see below):