The government should consider introducing a "cap and collar" agreement on the Government Actuary's Department (GAD) rates which are used in drawdown calculations, a provider says.
Hornbuckle Mitchell said the move - which is an agreement not to go above or below certain interest rates - would introduce greater certainty to retirement income projections and limit fluctuations. The self-invested personal pension provider said GAD rates are at an all-time low because quantitative easing and Solvency II has pushed down gilt yields. Head of sales Stewart Dick (pictured) said: "This is impacting unfairly on people in drawdown who are seeing their incomes squeezed due to these unprecedented government and regulatory measures." He explained if HM Revenue & Customs (...
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