Will we see income drawdown reform?

Helen Morrissey examines the pressure on the government to tackle drawdown

Helen Morrissey
clock

Retirees in income drawdown have had a miserable time of late. Volatile investment markets, record low gilt yields and a reduction in maximum income means many face significant drops in income when they have their next review. Reductions of 40 or even 50% have been widely reported.

Providers such as AJ Bell have called for change. Chief executive Andy Bell has lobbied the Treasury to reinstate the 120% maximum GAD limit and has asked whether gilt yields are the best way to ca...

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

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

SPP calls for greater clarity on scope of VfM framework

SPP calls for greater clarity on scope of VfM framework

SPP supports phased implementation to ease the burden on schemes and providers

Martin Richmond
clock 11 September 2026 • 2 min read
Partner Insight: Re-thinking (private) equities for pension portfolios

Partner Insight: Re-thinking (private) equities for pension portfolios

For DC schemes considering incorporating private equity, accessing the right areas of the market will be key to translating the asset class’s potential into improved outcomes for members.

Nils Rode, Chief Investment Officer, Schroders Capital and James Wall, Head of Defined Contribution Business Development, Schroders
clock 11 September 2026 • 6 min read
People's Pension launches personalised member video welcomes

People's Pension launches personalised member video welcomes

Master trust says move builds on its personalised video strategy

Martin Richmond
clock 09 September 2026 • 1 min read
Trustpilot