Income drawdown: The need for an alternative approach

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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...

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