Income drawdown limit upped as gilt yields rise

Income drawdown limits have been raised following an increase in the notional yield on 15-year gilts from the 15-year low of 4.11% reached on 13 June. The 15-year notional gilt yield, the benchmark gilt yield for annuities and income drawdown, had reached 4.62% on 21 July, up more than half a percentage point from its June low. The Government Actuary's Department has raised the limit with effect from 1 August to take account of the rise in the benchmark yield, which has come despite a 25 basis point cut in the Bank of England's official cash rate target in July. A male aged 60 investi...