Pensions simplifications will prove to be a boost for the income drawdown market according to IFA the Annuity Bureau.
Head of marketing David Marlow says the new proposals, published alongside last week's pre-Budget Report, will allow investors to withdraw as little as £1 a year from their scheme from April, 2005.
And those with larger pension pots will be able to drawdown up to 120 per cent of what may be currently purchased on the open market with an annuity says Marlow.
He says however: “What is perplexing is the fact that the Government is likely to change the name by which income drawdown is known to 'unsecured income' where investors enter into a scheme before age 75 and, alternatively, 'secured income' after age 75, when the existing name of 'income drawdown' would suffice for both.
“This change creates unnecessary confusion.”