New income drawdown rates could 'shock' pensioners

The new capped drawdown amounts for individuals will be 100% of their equivalent annuity, rather than 120% as before. Additionally, the GAD tables used to calculate those equivalent annuity rates may be recalculated, further reducing pensioners' incomes, experts say. New GAD tables for the over-75s were already being calculated due to the removal of the age-75 rule, which comes into effect in April. However, Gareth James, technical marketing manager at AJ Bell, says a new table for the under-75s may also be in the pipeline and could be out as soon as next week. James says HMRC t...