Drawdown: what action advisers should take

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The new drawdown rules will undoubtedly bring much needed relief to many pensioners. Now that the detail has emerged regarding how these changes are to be implemented, advisers can start planning what action is needed says Adrian Walker.

The 20% uplift in income drawdown will come into effect from 26 March 2013, and will automatically apply from the start of the client's scheme income year following that date. Unfortunately there is nothing advisers can do to bring this change in any quicker. Even if an adviser triggers a recalculation point, the 20% uplift will still not take effect until their new scheme income year. Who is affected by this change? Clients in five year statutory review period Clients who set up drawdown arrangements before 6th April 2011 have a maximum annual income that already includes a 20%...

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