The government's proposals to remove the age-75 annuitisation rule and simplify income drawdown are a step in the right direction but still "missing a big opportunity", Skandia says.
In response to the HMRC consultation on altering options at 75, Skandia criticizes the Revenue's approach to valuing capped income, assessing the risk of retirees falling back on state benefits and simplifying capped income within income drawdown. The government has proposed to end the effective ban on annuitisation after 75, and allow retirees to access their pension fund via two new forms of income drawdown. In these new forms, retirees can access their money either via capped drawdown, withdrawing amounts up to an annual limit calculated using GAD rates, or flexible drawdown, withd...
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