Drawdown pressure lifted but risks remain - providers

Chancellor George Osborne today announced the maximum income limit for capped drawdown would be pushed back up to 120%. It was cut from 120% to 100% 18 months ago at the same time as the rules were altered to allow people to remain in drawdown beyond age 75. MGM Advantage said this was due to government concerns that people could draw income from their pension pots too quickly, meaning future income would decline and potentially people could fall back on state means-tested benefits. However, other changes, such as falls in gilt yields to historically low levels has meant many drawdown ...