The Government's quantitative easing strategy is forcing down gilt and bond yields to record lows, which is decimating higher net worth pension funds based on the income drawdown option.

Rich pensioners who have chosen the income drawdown option, meaning they can defer converting their pension pot into an annuity or income for life, are being hit by the drop in the Government Actuary's Department (GAD) rate, according to independent retirement specialist Rockingham Retirement.