Income drawdown: Putting the right advice process in place

The retirement income market has gone through quite a change over the past 12 months. Increasing yields from bonds and gilts has meant increases in annuity rates, along with rises in the GAD rate on capped income drawdown. Amplifying the maximum income further was the reintroduction of the 120% GAD limit in March 2013. By way of example, at the time of writing, the maximum income that can be taken from a new drawdown arrangement is 7.32% of the fund for a 65-year-old. This could be one of the reasons why we have seen renewed interest in drawdown. Association of British Insurers (ABI) ...