Standard Life said gilt yields used to calculate income limits for income drawdown will rise from 2% to 2.75% for March reviews. It said this, coupled with the implementation of the gender directive last year and rising gilt yields, would mean income increases of about 18% to £5,100 for a 60-year-old woman with a £100,000 drawdown pot.

The provider added that the return of the 120% GAD rule for reviews after 25 March would mean the maximum income the subject could take would rise to £6,120 at her next review – an increase of 42.3% on their 1 December 2012 limit, which stood at £4,300.

It said men would also benefit. Taking into account all the changes male income could increase by about a third.

The life and pensions firm is also campaigning to make further changes – it said there is a strong argument for creating a “fairer basis” for setting drawdown limits by amending the underlying calculations, bringing them more in line with the annuity rates they are supposed to mirror

Alastair Black, Standard Life head of customer income solutions said: “The increasing gilt yields and the restoration of the 120% limit is heartening news for those in drawdown – especially women. With our ideas on improving the method of calculating income, 2013 could be a very important year for income drawdown.”

Sebastian MacKay, investment director at Standard Life Investments, said: “The gilt yield used for drawdown is up from its lowest level of 2% to 2.75%. Gilt yields have risen without the support of central bank purchases, as a reduction in euro break-up risks lead safe haven flows to dissipate and as doubts about the UK’s fiscal situation arise. We expect these trends to continue.”