Drawdown warning issued as Green Paper alterations loom

Investors close to retirement are being urged to sort out their income drawdown arrangements before the Government's proposed modifications come into force. Government income drawdown proposals, as put forward in the Green Paper and set to be implemented in April 2005, will reduce the lump sum payment options available to the spouse on the death of their partner. While the money will no longer incur a tax charge when taken as a lump sum, the spouse will only receive the amount initially invested in the fund at the time the drawdown plan was taken out. The insurance companies will pocket...