Government cuts income drawdown limits

The Government Actuary's Department is to reduce the maximum and minimum people can withdraw from pe...

The Government Actuary's Department is to reduce the maximum and minimum people can withdraw from pensions under income drawdown from 1 February. Drawdown limits tend to move in line with gilt yields and the latest reduction is due to yields falling back this month. Maximum income will now be £19,000, falling from £19,500, based on a man aged 60 with a fund of £250,000. The fall also mirrors reductions in the annuity market with providers such as Canada Life, Norwich Union and Prudential cutting rates in January.