Income Drawdown: Government says no change despite falling incomes

The government has indicated it will make no changes to help Income Drawdown investors faced with cuts to their annual incomes. Income Drawdown, or Capped Drawdown as it is now more properly known, allows retirees to draw  directly from their fund albeit with a cap on the annual income which can be taken. The maximum allowable income is set by the Government Actuary Department and as is often known as the GAD rate. GAD rates for Income Drawdown investors The GAD rate is linked to your gender and the 15 year gilt rate, which over recent months has fallen significantly, resulting ...

Cheques could still have a future

The humble chequebook could have a future after all. If a viable alternative could be found, the UK Payments Council had planned to phase out cheques by 2018. However a government minister has now made an intervention which could see the plans change. Writing to the Treasury Committee hearing into the future of cheques Mark Hoban, Financial Secretary to the Treasury, stated that there until an alternative had been fully tested there was no “credible or coherent case” for the abolition of cheques. Committee The Treasury Committee had considered the proposed abolishment of cheques some time ago, but after negative feedback to the idea ...

Government says no to early pensions access

After a period of consultation the government has decided not to allow people early access to their pension funds. Currently you have to be at least 55 to access your pension, however some believe that if this age was to be reduced it would encourage saving into pensions, this view has been rejected by the government. Financial secretary to the Treasury Mark Hoban said: 'While early access has some merits, there is insufficient evidence to suggest it would act as an incentive to save more into pensions.' The government also believe that introducing early access would push up costs; Mr Hoban went on ...