Drawdown: 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 ...