Andy Bell, Chief Executive of platform provider A J Bell, had written to Mark Hoban, Financial Secretary to the Treasury, calling for the Government to take action on unnecessary income drawdown obstacles. These obstacles continue to affect thousands of pension investors with many experiencing 30% to 50% reductions in their drawdown income.
Commenting on the response Andy Bell says, “It is clear that the Government is failing to grasp the strength of feeling and momentum that is growing across the country on this issue. With standard annuities now providing higher income than the maximum income available under drawdown it proves that the balance between flexibility and risk mitigation has tipped too far in the latter direction. The Government’s concerns about excessive depletion of drawdown pension funds are imagined rather than real and this should not be influencing policy in this area.”
Bell continued, “We will continue to encourage advisers and pension investors to use our Call For Action template to write to their MPs to highlight the case for change.”
The new drawdown rules were introduced by the Coalition Government in April 2011. AJ Bell has been lobbying for change since their implementation and wrote previously to Mark Hoban in September 2011.
Previous letters include Letter to Mark Hoban Sept 2011 and the Response from Mark Hoban Sept 2011