Flexible drawdown: Are you missing a trick?

A frequent topic raised by advisers at our recent roadshow seminars was the problems being experienced by their clients when an income review was due and the mandatory switch to capped drawdown, which has resulted in quite significant reductions in maximum income levels. The bulk of the reductions are due to the loss of the 20% uplift afforded under the previous GAD tables. But another contributing factor has been the reduction of gilt yields, a fallout from the Treasury’s quantitive easing process. An individual facing a five year income review now would be subject to a gilt yield ar...