AJ Bell calls for pension drawdown re-think

Andy Bell, chief executive of the provider, said the government should permit savers to withdraw 120% of the equivalent annuity rate from their income drawdown pot. Prior to April this year, people were able to withdraw 120% of the Government Actuary Department (GAD) rate, which is used to set annuity rates, every year from their pension pot. However, this was reduced to 100% of GAD. This, coupled with GAD's historic low for October, means people using drawdown face sizeable cuts to their annual income, said Bell (pictured). In an open letter to Mark Hoban, financial secretary to t...