Financial secretary to the Treasury Mark Hoban has rejected AJ Bell's call to increase the limits on income drawdown.
In April, the government reduced the annual sum investors could withdraw from their pension funds to 100% of the equivalent annuity rate, down from 120%. This month, AJ Bell director Andy Bell wrote to Hoban calling for the 120% limit to be reinstated. However, Hoban, pictured, has written back refusing to consider the proposal, saying the removal of the requirement to annuitise by age 75 is only possible with the lower limit. "The change in the drawdown withdrawal rate to a single rate of 100% of the Government Actuary's Department (GAD) rate at any age was integral to ensuring th...
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