If you have a \u201cDrawdown Pension\u201d, prepare for a nasty surprise.<\/p>\n
One Horsington resident was stunned to return from holiday to find his income had been reduced, at a stroke, by over one third following a review of his fund.<\/p>\n
All pension companies are required by law to review the state of their client\u2019s funds every 3 years to ensure the income from it is sustainable.\u00a0 The rules were changed this April, and now anyone with a drawdown pension (where the funds are invested in the stock market rather than in an annuity) can expect a similar result when their pensions come up for review.<\/p>\n
The rules now insist that funds\u2019 maximum income limits are governed by the notional return on Gilts, which are at an all-time low thanks to printing money through quantitative easing. This applies even if the fund is not invested in Gilts.<\/p>\n
It seems that there is no problem which cannot be made worse by Government intervention.<\/p>\n
Pensioners in these schemes can apparently expect cuts of between 36 and 50 per cent, while MPs and the mandarins who make to rules continue to collect their gold-plated-index linked payouts.<\/p>\n
You have been warned.<\/p>\n
More <\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If you have a \u201cDrawdown Pension\u201d, prepare for a nasty surprise. One Horsington resident was stunned to return from holiday to find his income had been reduced, at a stroke, by over one third following a review of his fund. All pension companies are required by law to review the state of their client\u2019s funds … Continue reading “Pension misery ahead”<\/span><\/a><\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2757],"tags":[],"class_list":["post-1997","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6glYD-wd","_links":{"self":[{"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/posts\/1997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1997"}],"version-history":[{"count":4,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/posts\/1997\/revisions"}],"predecessor-version":[{"id":2022,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=\/wp\/v2\/posts\/1997\/revisions\/2022"}],"wp:attachment":[{"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1997"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/horsington.blog2.idnet.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}