Drawdown

The number of people entering income drawdown on nil income could be using the opportunity to take tax-free cash before it is abolished.

A default annuity option could be added to personal accounts as the government is switching its focus onto the decumulation phase of the retirement income system.

Scottish Widows have added income drawdown to its Individual Buy Out plan, or Section 32 (S32) deferred annuity.

The annuity market must become more innovative and flexible to meet the needs of people's changing perception of retirement from a cliff-edge change to a transitional process, claims industry experts.

Final versions of the maximum drawdown levels available after A-Day suggest drawdown could provide better value than an annuity for those in the earlier stages of retirement.

IFAs could tap into a £11bn market if they would advice their drawdown clients in older style contracts to transfer to a new provider, says Scottish Equitable.