Drawdown's tide of change

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Annuity rates reach 18-year high of 7.75% in July

Annuity rates reach 18-year high of 7.75% in July

Up from 7.66% in April

Sophia Panayi
clock 30 July 2026 • 2 min read
Enhanced annuities: Turning health realities into better retirement outcomes

Enhanced annuities: Turning health realities into better retirement outcomes

'Retirement planning is not about choosing one solution over another but finding the right balance between them'

Mike Batty
clock 20 July 2026 • 3 min read
Robust fact‑finding: Annuities are back but file quality must keep pace

Robust fact‑finding: Annuities are back but file quality must keep pace

'Good quality annuity files tend to have one thing in common: robust fact‑finding'

Shirley Owen
clock 16 July 2026 • 4 min read