Capped Drawdown – increase in maximum limits

As announced in the Autumn Statement 2012, legislation introduced in the Finance Bill 2013 came into force on 26th March 2013.  This will increase the capped drawdown limit for pensioners of all ages  from 100% to 120% of the value of an equivalent annuity.  This increase in the maximum GAD will not be applied automatically by providers; clients will have to request any increases.  The increase can only take place at the start of a GAD year, therefore those with GAD years running from the 1st of March to 28th February, for example, will have to wait until March 1st 2014 before they can take advantage of the increase.