She says such reviews should consider factors such as:
- Underlying pension assets.
- The income the assets generate.
- The client's individual circumstances.
For example, reviews she would carry out with clients would be "bespoke" on a yearly basis, and discuss such things as the income from the pension and other sources, the client's age, health and any external factors that might have changed their objectives for the fund over the past 12 months.
This could include anything, she says, from "an investment maturity other than pensions, or upcoming home improvements".
She continues: "Once an adviser has fully understood the needs of the individual, then the review can include worthwhile advice on ongoing suitability, including projected income figures and the number of years the fund can - at current [withdrawal] levels - be sustained."
Jeff Steedman, head of self-invested personal pensions and small, self-administered business development at Xafinity, agrees with the need to carry out regular reviews, and at any age.
"Financial advisers can add a huge amount of value to clients at whatever age, whether 55 right through to 80 and over.
"Pension pots, whether defined benefit or defined contribution or personal pension, need to be reviewed regularly to ensure the investment risk matches the client's needs and aspirations."
Fiona Tait, technical director for Intelligent Pensions, believes regular reviews are essential to enable "remedial action to be taken before any discrepancies result in too large an impact".
For Ms Tait, a cashflow plan is a vital part of the adviser's toolkit. She explains: "For those actively withdrawing income, a revised cashflow plan at each meeting is the best way to help clients remain on track.
"It helps them consider whether the advantages of drawdown still outweigh the alternatives for this particular portion of the client's overall portfolio of assets."
Tackling tax
Taxation is one of the biggest bugbears for everyone working in financial services - so it is hardly surprising that the majority of Britons find understanding their tax situation frustrating, time-consuming or even too difficult to tackle at all.
Mr Steedman says this is where advisers can really help add value, to make sure any ongoing suitability reviews take tax into consideration, and explain it in simple terms to clients.
He comments: "Tax planning, including understanding when the state pension will start for the client, as well as their short-, medium- and long-term income needs, must all be managed within the ever-changing tax bands.
"At the least, annual reviews should be carried out with the support of a financial adviser who can also help reduce future inheritance tax."
