Drawdown customers and their advisers must be aware that despite the 20% uplift being restored, their pension might not increase for a year, Skandia warns.
The maximum level of income a capped drawdown customer can withdraw is being increased from 100% to 120% (of an equivalent annuity) on 26 March 2013. However, Adrian Walker, head of retirement planning at Skandia [pictured] warned the change will not come into effect until the start of a person's next ‘scheme year', so existing drawdown clients may not benefit from the increase until March 2014. Walker said: "On the face of it, the uplift in the capped income calculation by 20% is great news. However, people may just read the headline and then expect their income to increase automatic...
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