The government should do more to ‘ease the pain' suffered by drawdown pensioners, many of whom will not be helped by the 120% limit reinstatement until 2014, Standard Life has said.
The provider said the move back to 120% of GAD - announced in the Autumn Statement and up from 100% - would make a real difference, but many customers would have to wait until 2014 to feel the benefit.
Alastair Black, Standard Life's head of customer income solutions, said: "The problem is that, as the proposals stand, the higher 120% income limit won't kick-in until the start of the client's next drawdown year after 25 March.
"This means some clients won't benefit for almost 14 months from now."
The firm said a client who started drawdown on, on for example, 14 March 2012 would have to wait until 14 March 2014 to get the higher limit. However, a client who started drawdown two weeks later would benefit almost immediately.
Black added: "We've asked HMRC to go further. We want the 120% limit to apply to any income review from then on. This would allow more drawdown clients to benefit sooner, helping them and the economic recovery.
"It's fairer. And there's no extra administration burden for drawdown providers.
"This move back to 120% is positive, and we welcome it, but we're pushing for more. To really ease the pain, more drawdown users need to be able to access this sooner. And we're still pressing for drawdown rates to be improved too - they just don't do what it says on the tin."
'Life catches up with us in the end'
‘Personalised Predictive Analysis’ tool
Summer series continues
Both start in August