The government will not change the basis on which GAD tables are formulated for income drawdown according to the Autumn Statement.
This comes after the government commissioned the Government Actuary's Department earlier this year to review tables to see if income drawdown rates are "a reasonable match to annuity rates."
In the Autumn Statement it said: "In light of GAD's findings that withdrawal rates are a reasonable match to annuity rates, the government will not change the basis on which the GAD tables are formulated."
This goes against industry calls to decouple income drawdown from annuity rates.
"It was OK to have this link when income drawdown and annuities were interchangeable," says AJ Bell's head of platform marketing Mike Morrison (pictured). "It used to be the case that income drawdown was an annuity deferral mechanism but now it isn't.
"Now we have a case of people who don't want to be invested in gilts suffering from the effects of being invested in them - we need to separate the two and give people more flexibility and choice."
LV= head of pensions and investments Ray Chinn added: "The decision not to change the way in which drawdown limits are calculated is disappointing and will mean people are still at the mercy gilt yields which bear no relation to how their drawdown funds may be invested."
Bought plans in 1988 and 1989
To be added to model portfolio service
Launched 25 September