AJ Bell calls for advisers to join drawdown campaign

The platform provider is giving clients and advisers a Call For Action template letter highlighting the issues with drawdown.

AJ Bell chief executive Andy Bell said: "If the issues with drawdown are highlighted to MPs across both the UK and the political spectrum the pressure for a fundamental review of the rules will increase."

Bell has previously written to the Treasury requesting the 120% maximum GAD limit to be reinstated and asking government to establish whether gilt yields are the best way to calculate drawdown income.

In some cases, the income of some pension investors have dropped by 40% - 50% since the GAD rate was reduced to 100% in 2011.

Bell said, "Over the last month or so my postbag has been full from advisers and pension savers putting their support behind our drawdown campaign and asking how they can encourage the Government to act.

Bell continued "We've reached a situation where a standard annuity is offering a higher income than maximum drawdown. We're being told time and time again by advisers and pension savers that they feel this is proof the Government has got the balance between flexibility and risk mitigation wrong and that the link between gilt yields and drawdown limits must be broken."

 

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