March 2013’s Budget introduced a reversal of the reduction to income drawdown limits. Historically individuals could take 120% of the “GAD” (Government Actuarial Department) rates when taking an income from their pension fund under Pension Fund Withdrawal (Capped Drawdown).
Most providers will now reverse the limit from 100% to 120% at the next annual review but what is more ‘niche’ is that some pension contracts may allow a sooner review if additional monies are paid into the plan.
It should be noted that 120% GAD withdrawals may not be appropriate for everyone, and not all contracts will allow this. It is therefore important to seek independent advice and Wingate Financial Planning specialise in providing advice to those in or at retirement.