Carl Lamb gives seven reasons why capped drawdown members and IFAs need to consider scheme pension
1. The GAD Yield for capped drawdown fell to a mere 2.75% for October. This means clients that entered an unsecured pension (USP) or alternatively secured pension (ASP) - that are now by default in capped drawdown - will receive a 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 in April from 120% to 100%, a repricing downwards of the GAD tables on 6 June, and falls in the underlying portfolios of plenty of clients over the past five years. 2. This will only get ...
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