What the drawdown rate rise means for clients

Pensioners using income drawdown were given a boost when the government announced the maximum amount that can be withdrawn would increase to 3% in September. The rate – set by the Government Actuary's Department (GAD) on behalf of HM Revenue & Customs – is the maximum drawdown pension that can be taken through income drawdown. The last time it stood at 3% was November 2011. However, it is still well below the 4% mark reached in May of that year. It has been hovering around 2% to 2.5% for the intervening years. Good news? So should drawdown be considered for all retirees or is it ...