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Article: Experts say A-day will spark mass move to drawdown.(new Inland Revenue pension legislation is expected to lead to an increase in income-drawdown business)(Brief Article)
- Article from:
- Money Marketing
- Article date:
- April 24, 2003
- Author:
CopyrightCOPYRIGHT 2003 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The new Inland Revenue pension legislation will kick off a surge in income-drawdown business as investors hitting the lifetime limit move to avoid punitive tax charges, pension gurus are predicting.
Scottish Equitable pensions development director Stewart Ritchie and Scottish Life head of pensions strategy Steve Bee both foresee a mass move to income drawdown at A-day as individuals with funds of [pounds sterling]1.4 m take benefits to avoid a 60 per cent tax levy for breaking the indexed limit.
A survey by human resources consultant Mercer last week predicted that 290,000 people would hit the lifetime limit at A-day. Experts warn that there may be a ...