James Hay Partnership has started quoting drawdown business at 120% GAD before legislation is changed on 26 March.
The self-invested personal pension and small self-administered scheme provider added existing clients will be able to withdraw 120% GAD following their next anniversary. The government confirmed the maximum amount pensioners can withdraw from their pension through drawdown would return to 120% GAD last month. It had been reduced to 100% of GAD, resulting in some pensioners seeing a 50% drop in income. Draft legislation returning the maximum to 120% is contained in the Finance Bill 2013. Colin Moody, operations director at James Hay Partnership, said: "It is reassuring to know that...
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