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Article: Rise in gilt yields may hit income drawdown.(News)(Brief Article)
- Article from:
- Money Marketing
- Article date:
- October 30, 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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An increase in gilt yields could spark an increase in misselling of income drawdown as maximum income drawdown limits rise, warns The Drawdown Bureau.
The at-retirement specialist firm says a surge in gilt yields to 4.92 per cent by October 15 means that a male aged 55 could get 19 per cent more income in drawdown than from a top-paying single life annuity.
Drawdown income allowances are tied to gilt yields which have risen while annuity rates, held back by increased longevity, have not.
The Drawdown Bureau's concerns over drawdown misselling spring from ABI statistics which show that the average case size for drawdown fell by 8 per cent to ...