Adviser > Individual > Drawdown > Reviews
Reviews
When can the income drawdown limits be reviewed?
The maximum income limit is automatically reviewed
- at the three yearly review up until age 75, then yearly thereafter (known as the reference date) and
- when the following occurs:
| | Change | When maximum limit must be calculated | When maximum limit must be applied |
| Additional designation | Your client makes an additional designation from the same plan. | On the date the event takes place | On the date the event takes place |
| Partial annuity purchase | Your client makes a partial annuity purchase. | On the date the event takes place | Beginning of the next plan year |
| Payment of pension share | Your client pays a pension share to an ex-spouse. | On the date the event takes place | Beginning of the next plan year |
| On request | Your client can request the scheme administrator (SA) recalculates the GAD limits. This can occur at any time, and the SA may agree to this. | On the date the event takes place | Beginning of the next plan year |
For further information, have a look at our leaflet on When maximum GAD income is recalculated.
What are the benefits of reviewing income more frequently than the 3 yearly review?
If your client is withdrawing their maximum income, they will have less money to buy an annuity, and the more they withdraw the smaller the fund value they will have left. So more regular reviews will be required to monitor the situation than would be required if your client was withdrawing little or no income.
The benefits of regular reviewing
Carrying out a regular review, not just on the level of income withdrawal but also the investment strategy and your clients ongoing needs allows you to:
- check whether the annuity purchasing power of the fund is being maintained
- manage your client's expectations and take appropriate action where required.
For professional advisers only
