Income drawdown: pensioners face further cuts For example, a 60 year-old who went into drawdown in August 2007 with a fund of £250,000 would then have been eligible for an annual pension of £20,700. Assuming this person had maintained their £250,000 fund, the maximum income they will be able to receive following their drawdown review next month would be £13,250. This is a drop of 36pc. Gareth James of AJ Bell, the Sipp (self-invested personal pension) specialist, said: "This is an unwelcome record that will result in a very significant cut to the maximum income of hundreds or even thousands of pensioners. The gap between gilt yields now and five years ago means people due for drawdown review next month are faced with some of the largest cuts to their maximum income seen by any pensioners so far. He said the Bank of England's policy of quantitative easing had been driving down gilt yields ever since the financial crisis hit in 2008 and that it was "impossible to say" when gilt yields would recover. Mr James added: "There is no longer any reason to link the income of people with diversified portfolios to a measure based on the return from gilts." Those already taking an income from drawdown had "very few options," he said. If they do not have other investments they could look at buying an annuity, which would give them the security of a fixed income. However, they would be buying an annuity when rates are at record lows. Enhanced annuities, which may pay more than a standard annuity, and fixed term annuities, which allow an individual to retain some flexibility with their income strategy, offer some further options. Skandia pointed out that anyone who had a guaranteed retirement income of at least £20,000 was not affected by the restrictions of capped drawdown and could opt instead for "flexible" drawdown, which allows unlimited withdrawals. Drawdown pensioners were also hit last year when the rule governing maximum incomes was changed. Previously, they could take 120pc of the official benchmark rate, but this was cut to 100pc.