.......payments cut to £900

Thousands of pensioners must brace for their incomes to be slashed by half this summer in yet another crippling fallout from the eurozone crisis. Some retired savers who have kept their pension invested in the stock market will see the money they can withdraw from their pot reduced by 55 per cent at a stroke. It means a £2,000 a month income could be slashed to just £900 overnight. The huge blow awaits those who retired in 2007 and opted to steer clear of annuities, which convert a pension pot into a fixed monthly income. The alternative – called pension drawdown – allows money to be withdrawn in dribs and drabs from a pension pot every month. But it is subject to a strict cap, which is about to be lowered drastically for pensioners who retired in 2007, in a compulsory five-year review with their financial adviser. Andrew Tully, of pension company MGM Advantage, says: ‘Customers face the prospect of dealing with a huge hit on their income. ‘Those reaching reviews soon are likely to be the worst hit as rates peaked in July 2007.’....Read more here: Pension incomes slashed in half in crippling eurozone crisis fallout