The age that you need to buy an annuity from your Income drawdown fund has temporarily increased the age to 77 with immediate effect. The new Government agreed this temporary rule in its emergency budget.
Kevin Stelfox, Sales Director at Retirement Solutions, said, “Having to take an annuity at age 75 has long seemed outdated. We at Retirement Solutions welcome the temporary decision by the government.”
It happened faster than many in our industry expected, but as a provider of flexible retirement solutions we’re already up and running. Until legislation is finalised, those aged up to 77 can:
• stay in income Drawdown
• keep their options open
• take an income or not
Source: Sun Life Financial of Canada
Income drawdown allows you to keep your fund invested and not buy an annuity. You can have your tax-free cash (maximum of 25% of the fund) and from the remaining fund you can take an income if you require to a maximum of the Government Actuaries Department (GAD) rates.