Income drawdown: The need for an alternative approach

clock

Today the Autumn Statement confirmed there would be no change to how the income from drawdown would be calculated.

However, many in the industry have called for income drawdown to be de-coupled from annuity rates. AJ Bell's Mike Morrison puts forward an idea for how it should work. Pensions seem to be a political football that never reaches the back of the net. Governments realise that people need to have pensions, and personal saving is better than the state having to provide, but any incentives - such as tax-relief - are expensive and difficult. Decumulation is the other end of the spectrum, but it must be attractive for people to take an income stream from their pension. Today, the choice is ef...

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

M&G's opens fixed term annuity to UK retail market after soft launch

M&G's opens fixed term annuity to UK retail market after soft launch

Prudential Guaranteed Income Plan backed by £128bn With-Profits fund

Jenna Brown
clock 22 July 2025 • 1 min read
Targeted support: FCA rules out specific annuity suggestions

Targeted support: FCA rules out specific annuity suggestions

Firms must signpost consumers to MoneyHelper’s annuities comparison tool

Jenna Brown
clock 30 June 2025 • 3 min read
How annuity underwriting needs to change to meet Consumer Duty

How annuity underwriting needs to change to meet Consumer Duty

'This is an industry systematically delivering poor outcomes'

Andrew Gething
clock 24 June 2025 • 4 min read