Pensioners using income drawdown who are transferring to a new pension scheme must be aware of fresh government rules regarding new review periods, Skandia warns.
Under rules announced on 9 December, pensioners will be able to use income drawdown indefinitely as the requirement to annuitise by age 75 will be removed from April 2011. Pensioners using capped drawdown will be able to take a maximum income of 100% of the equivalent annuity rate, and this income amount will be reviewed every three years before age 75 and annually thereafter. Currently, drawdown is capped at 120% of the equivalent annuity rate and reviewed every five years. Adrian Walker, pension development manager at Skandia, warns if pensioners currently using drawdown decide t...
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