Govt must go further to ease 'drawdown pain'

Jenna Towler
clock

The government should do more to ‘ease the pain' suffered by drawdown pensioners, many of whom will not be helped by the 120% limit reinstatement until 2014, Standard Life has said.

The provider said the move back to 120% of GAD - announced in the Autumn Statement and up from 100% - would make a real difference, but many customers would have to wait until 2014 to feel the benefit. Alastair Black, Standard Life's head of customer income solutions, said: "The problem is that, as the proposals stand, the higher 120% income limit won't kick-in until the start of the client's next drawdown year after 25 March. "This means some clients won't benefit for almost 14 months from now." The firm said a client who started drawdown on, on for example, 14 March 2012 would ha...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Legal & General goes digital for annuity applications

Legal & General goes digital for annuity applications

Applications could take 14 fewer days to process

Jenna Brown
clock 01 April 2025 • 1 min read
M&G launches fixed term annuity as it re-enters market

M&G launches fixed term annuity as it re-enters market

Fixed term of between five and 15 years on £10,000 minimum lump sum

Jenna Brown
clock 12 March 2025 • 2 min read
L&G reports record annuity sales of £2.1bn for 2024

L&G reports record annuity sales of £2.1bn for 2024

New business sales of annuities up 48%

Linus Uhlig & Jenna Brown
clock 12 March 2025 • 3 min read