HMRC: Drawdown providers must use male rates

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HM Revenue and Customs has told providers to use men's drawdown rates for all drawdown users from 21 December 2012.

The move, which was prompted by last year's European Court of Justice gender directive ruling, will allow women to take a higher drawdown pension income than before. Men will see no change to rates. HMRC said: "The ECJ has said that changes implementing the judgement have to be in place by 21 December 2012. However it is not yet certain how annuity providers will actually implement it. "Until it becomes clearer how annuity providers will apply the judgement in practice, the maximum drawdown pension for both men and women aged 23 and over should be calculated using the higher male rate...

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