Carl Lamb highlights the reasons why capped drawdown clients could benefit from scheme pension
• The GAD yield for capped drawdown has fallen to a mere 2.75% for October which means clients that entered unsecured pension (USP), alternatively secured pension (ASP) that are now by default in capped drawdown will receive a significantly lower income when their next five year review takes place. We also have a perfect storm in the drawdown market as this was coupled with a decrease in the maximum income limit from 120% to 100% in April, a repricing downwards of the GAD tables on June 6th and falls in the underlying portfolios of a lot of clients over the past five years. • This will ...
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