Pensioners turn their back on income drawdown The number of drawdown plans taken out last year was 40pc lower than in 2010, according to figures from the Association of British Insurers (ABI), and the trend so far this year shows little sign of recovery. The fall follows drastic cuts to the amount that pensioners were allowed to withdraw from drawdown pension plans. The maximum income is linked to annuity rates, which have fallen sharply as a result of the collapse in yields on government bonds or gilts. Drawdown savers' pain was worsened by a change in the rules - previously they were allowed to take 120pc of the benchmark annuity rate, but this was cut to 100pc last year. Many drawdown investors have also seen the value of their pension pots cut by falls in the stock market. About 18,000 drawdown plans were taken out last year, compared with 30,000 in 2010. In the first six months of this year about 9,400 were sold. Annuity sales held up better, falling by 6pc from 426,000 in 2010 to 400,000 last year. Tim Gosden of Legal & General said: "Although industry statistics do not cover all companies that offer these products, there is still a very clear trend. With uncertain market conditions and depressed annuity rates, many consumers are deferring retirement or not taking all of their benefits at once. Those who do require an income appear to be more attracted to the certainty of an annuity and many are ensuring that they get as much income as they can through enhanced annuities, where 'lifestyle' and general health issues can boost income by up to 40pc.