Drawdown's tide of change

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Fiona Murphy looks at how income drawdown is changing and likely to develop in the future

In the wake of the restoration of the GAD limit to 120%, it seems as if the gap between annuities and drawdown is widening. This is echoed in our annuity inquiry on pages 18-19 where a fifth of advisers polled said they felt more comfortable advising on drawdown. Only 10% said they favoured annuities. Prudential pensions business development manager Colin Simmons has also seen this shift among advisers. “We’re seeing a bigger appetite from advisers asking about income drawdown,” he says. “I think it’s driven from the 120% GAD rate which is going to boost the amount of income a clie...

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