Over 70% of SIPP and SSAS providers think last year's reduction in maximum drawdown rates was wrong, according to research by the Association of Member Directed Pension Schemes (AMPS.)
Meanwhile, three-fifths (60%) of survey participants said the government should review the rules again.
The maximum income limit was reduced in April 2011 from 120% to 100% of the GAD rate, causing widespread concern among practitioners that retirement incomes would significantly reduce.
AMPS chairman, Andrew Roberts said AMPS members reported "their drawdown clients are unhappy that the rule changes have brought about such large reductions in maximum drawdown rates, coming at a time when fund values are often depressed and gilt yields are at historically low levels."
In addition, advisers said the take up of Flexible Drawdown, which had also been bought in as part of the treasury's pension reforms, was lower than expected.
As a solution, Roberts said: "One proposal made by our members is that HMRC increase the minimum yield for calculating drawdown from 2% to, say 3% or otherwise recalculate the tables as there appears to be a gap between market annuity rates and the tabled drawdown rates."
Stewart Dick, head of sales at AMPS member Hornbuckle Mitchell, took the proposal one step further.
"Could the government not consider setting a ‘cap and collar' on the 15 year gilt rates used when setting GAD rates at, say, a minimum of 3% and a maximum of 6%, so that some stability can be restored to the market?" said Dick.
"Otherwise, retirees will continue to face a lottery as to how much income they can take, dependent on 15 year gilt yields at the time they have their triennial review."
Data quality is key
Granted leave to appeal the judgement