Scheme pensions on rise
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Talbot & Muir says it has seen a rise in scheme pension enquiries since the Government announced plans to extend unsecured pensions beyond age 75.
The coalition launched plans last month to replace alternatively secured pensions with capped and flexible drawdown options from April 2011.
It would allow people to take capped drawdown, the equivalent of an unsecured pension extended beyond 75, for the whole of their retirement instead of buying an annuity.
The Government also proposes flexible drawdown, where people can draw unlimited amounts provided they secure a minimum income. It is consulting on what the minimum should be.
The Government Actuary’s Department’s limit has dropped from 4 to 3.75 per cent for August, reducing the amount of income drawdown investors can take.
Talbot & Muir says this, together with the extension of drawdown, has resulted in a boost in the number of enquiries on scheme pensions, which allow people to draw more income than drawdown, as it is not linked to GAD levels. Investors can also secure a 10-year guarantee.
Director Nathan Bridgeman says: “We have had lots of calls from advisers since the Government’s announcement and the quotes for scheme pension look far more attractive.”
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