Prudential technical manager Les Cameron explains why drawdown is set for the 'perfect storm'.
Time is running out. The perfect time to enter drawdown ends on 30 September 2012. The gilt yield, a key component used when calculating the maximum income available from drawdown pension funds, is about to bounce back from its all time low. The 15-year gilt yield from the FTSE UK gilt indices is currently 2% and will be 2.25% for those entering drawdown in October. In September 2007, the relevant yield was 4.75%, although August 2007 saw a high of 5.25%. Entering drawdown now could be considerably less risky than it has been for some time. HM Revenue & Customs (HMRC) confirmed ...
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