Pressure on government to reform maximum drawdown rates should be resisted as the move would see more pensioners deplete funds before they die, Partnership has warned.
Income drawdown providers and commentators have been calling for the government to increase current levels - from 100% of the GAD rate - to help pensioners who have seen their income fall by up to 50% this year. Until April, this year the rate was 120% of GAD but the government reduced it to cut the risk of people running out of money and relying on the state. However, Partnership urged the government to be cautious on making changes as the risk of fund depletion was high at 100%. It said research indicated one in four pensioners who start taking 100% from capped drawdown at age 60...
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