Under new maximum drawdown levels published for consultation, a person moving to an alternatively secured pension when they reach 75 could see a drop in maximum income of around 40%.
HM Revenue and Customs (HMRC) has released the figures proposed by the Government’s Actuary’s Department (GAD) for updating the tables used to calculate maximum income drawdown for both unsecured and alternatively secured pensions. The consultation will close on the 31st December After A-day people in retirement who opt to receive income drawdown, or an unsecured pension, will no longer have to buy an annuity when they reach the age of 75. Instead they can continue with income drawdown under what will be called an alternatively secured pension, but with reduced maximum limits. This cha...
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