Dunstan Thomas moves fast to ensure Imago Front Office is Budget 2014-ready for Income Drawdown changes.
27 March 2014
Major changes to income drawdown calculations affect illustrations from today.
Dunstan Thomas, the retirement market’s IT solutions provider, moved fast this week to implement changes to its flagship suite of pensions illustrations tools within Imago Front Office. From tomorrow, 27 March, the Minimum Income Requirement (MIR) for Flexible Drawdown calculation will fall from £20,000 to £12,000 per annum. Simultaneously, Capped Drawdown policy holders will be allowed to take a maximum income calculated as 150% of the Government Actuaries Department (GAD) limit, based on current age and life expectancy, rather than 120% of GAD as it is today.
So all illustrations administered by Imago Front Office, with a ‘Plan Start Date’ or ‘Review Date’ from today 27th March 2014 onwards, will be subject to these new income drawdown changes. For existing illustrations, Imago will apply the new maximum income uplifts to capped and flexible drawdown plans at their next annual review. This means that by 26th March 2015 all existing income drawdown plan holders will be offered this additional flexibility.
Maggi Tuck, head of retail compliance at COURTIERS Investment Services Limited, an Imago customer, commented on the changes made by Dunstan Thomas: “We have been impressed by the speed at which Dunstan Thomas were able to make the budget changes in Imago Front Office so we could ensure all our income drawdown illustrations from today onwards comply with Budget 2014 changes.”
Natanje Holt, managing director, Dunstan Thomas, commented on these changes: “The Budget 2014 has marked a significant change in the Government’s policy for the at-retirement market. Making annuity purchase voluntary and increasing drawdown limits so significantly, gives people much more choice about how and when they spend their pension pots in retirement. However, it also places a larger onus on illustrations, financial advice and provider-led guidance; so that policy holders have the best possible opportunity to optimise their income and lifestyle in retirement. As the leading retirement illustrations provider we intend to play our part to the full.”