Among the most popular pensions policy announcements of recent Budgets, and Autumn Statements, came today as the chancellor revealed the income limit on capped drawdown arrangements will be increased from 100% to 120%, restoring the 20% uplift.
Andrew Roberts, chairman of the Sipp and SSAS trade body the Association of Member-directed Pension Schemes (Amps), welcomed the restoration of the 20% uplift to the GAD rate. However he said Amps will push for early implementation and back dating of the measure, otherwise pensioners will have to wait until legislation is passed in July 2013.
‘I still need to contact our members to see how quickly they can implement this but it should not be a problem as it is so similar to the existing rules. But we are not sure whether this is a permanent change or a stop gap before a wide review or until GAD rates improve.’
Steve Gay, director of life, protection and savings at the Association of British Insurers said: ‘Drawdown customers will welcome the boost to the income they can take from their pensions. The ABI will work closely with its members and government to ensure this is implemented as efficiently as possible and we look forward to seeing further details’.