Treasury to launch income drawdown consultation - Boulding

The Treasury will launch a consultation tomorrow on the limits imposed on the amount of annual income drawdown investors can take, an expert claims.

Legal & General pensions strategy director Adrian Boulding said he was told by a source close to the situation that the Treasury will consult on the limits imposed on drawdown in April 2011, which he said has cut some investors' annual incomes by up to 40%. The rules dictate that when investors undertake their compulsory reviews of their income drawdown levels (every three years for the under-75s and every year for older investors), they will become subject to the new rate of drawdown set at 100% of an equivalent annuity, rather than 120%. Boulding said that despite various financial ...