Drawdown dilemmas: advisers share client woes

DRAWDOWN

Jenna Towler
clock • 4 min read

Reinstating the 120% maximum drawdown limit will help ease the pain felt by pensioners. As one life office calls for the government to go further, advisers share clients' drawdown strife.

While the government's move to reinstate the 120% GAD maximum drawdown rate will "make a real difference" many affected pensioners will have to wait until 2014 to feel the benefit, according to Standard Life. The provider said this week the government should do more to ‘ease the pain' suffered by drawdown pensions who have seen their income fall significantly, due to what had been described as the ‘perfect storm' of unpredictable economic factors and regulatory changes. Some pensioners have seen income drawdown levels drop by 50%. Alastair Black, Standard Life's head of customer incom...

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