Drawdown income increase

Retired people using ‘income drawdown’ schemes may be able to increase their income withdrawals by up to 5% following a lift in the maximum permitted income levels that was prompted by a rise in the yield on government bonds used as a benchmark.

The Financial Times said that a 65 year old with a £100,000 fund would see the maximum permissible income rise from £7,080 to £7,320 a year, with larger increases at higher ages.