Female Capped Income Drawdown Rates Set to Improve

Women who choose to invest their pension savings in capped income drawdown will receive a boost after December when new insurance rules come into force. Females already investing in capped income drawdown will see an increase at their next income review date. It is anticipated capped income drawdown payments are to set to increase by up to 8% for women investing in a capped income drawdown product.
The main alternative to a conventional annuity, capped income drawdown allows investors to decide where to invest pension fund and how much they can take from it as an income. A capped income drawdown pension has limits on how much can be withdrawn each year.
This is because the tables used by insurers to calculate annual maximum income limits are listed separately for males and females to reflect the fact that men donot usually live as long as women.
This will change from 21 December 2012 when a new European Union law banning insurers from using gender to price their products, including capped drawdown and annuities, comes into force.
HM Revenue & Customs, have confirmed that from December 21, female rates will raise creating one unisex rate. Currently females may take up to 8 per cent less from their pension funds each year than males.
Based on current capped income drawdown calculations, a 60-year-old woman with a £100,000 pension fund would get a maximum of £4,500 per year, compared with a man of the same age who would receive £4,800 per year. After December 21, the female should expect to receive up to 8 per cent more.
Men considering annuities are being urged not to delay purchase, with rates expected to fall after December 21, when insurers must start using one rate.
QROPS – A Brief
QROPS or Qualified and Recognized Overseas Pension Scheme had been introduced by HMRC (Her Majesty’s Revenue and Customs) in order to support and assist UK pensioners who wish to relocate to a foreign location. By using the QROPS program, pensioners from UK can save on taxes and use the pension funds to invest and grow their wealth.
rnPrior to the introduction of QROPS scheme, pensioners based in UK had little option to use their pension funds, besides buying out annuity; which was least affective way to optimize the pension funds. However, with the introduction of QROPS program, pensioners can get lot of flexibility and options ranging from investment in insurance to equity which can give a boost to their overall financial planning and optimization.
rnHowever, before choosing this popular pension scheme, it is recommended to do a thorough research into the workings and experience of the consultant who will manage your pension funds. It is very important for you to judge the best QROPS consultant who can understand and analyze your requirements, and accordingly suggest the best option which can ensure higher returns and more output.
rnGerard Associates, having more than 25 years of experience is the most recommended and preferred QROPS consultant and advisor for UK pensioners. For more details related to income drawdown or pension drawdown scheme along with QROPS program, you are requested to visit GerardAssociates.co.uk.