HMRC urged to lift 2% gilt floor to ease drawdown pressure

Rowanmoor Pensions said many pensioners are facing huge drops in retirement incomes from next month, as gilt levels fall to their lowest possible level of 2%. The firm explained falling gilt yields severely reduce the amount that can be drawn from a fund under capped drawdown. A 70-year-old male can expect to face a reduction of about 9% in income per 1% reduction in gilt yields, Rowanmoor said. August's rate is more than 3% lower than the 5.25% rate of August 2007. Pensioners who took an unsecured pension in August 2007 will be "severely affected" and see a considerable drop in incom...