DC members and capped drawdown pensioners warned on falling gilt yields

clock

Pensioners in capped drawdown face significant drops in retirement income because of falling gilt yields affecting the amount that can be drawn from a fund, Rowanmoor Pensions claims.

The small self administered scheme and self-invested personal pension provider warned for a 70-year-old male, a reduction of just 1% in gilt yield reduces income by 10%. It said the fall in 15-y...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

Partner Insight: DC in retirement - The importance of being diversified by design

Partner Insight: DC in retirement - The importance of being diversified by design

Becoming a retiree no longer means giving up investment risk. In this context, diversification is more essential than ever, argues Chris Parker.

Chris Parker, Man Group
clock 06 December 2024 • 5 min read
UPDATE: Reeves  to create LGPS and DC 'megafunds' in Mansion House growth bid

UPDATE: Reeves to create LGPS and DC 'megafunds' in Mansion House growth bid

Chancellor unveils ‘biggest pension reforms in decades’

Martin Richmond
clock 14 November 2024 • 4 min read
Partner Insight: Are private market investments a risky business for DC pension savers?

Partner Insight: Are private market investments a risky business for DC pension savers?

A 2024 survey carried out by Legal & General shows that DC contributors have a generally very positive attitude to private markets investing.

Rita Butler-Jones, Head of DC, Legal &General
clock 11 November 2024 • 7 min read
Trustpilot