The maximum income available from Capped Income Drawdown will rise again from 1st April.
The new GAD (Government Actuary’s Department) rate will rise by 0.25% to 2.75% from the start of next month.
This is the third month in a row that the GAD rate, which dictates the maximum income available from an Income Drawdown contract, has risen. The rate fell to its lowest point of 2.25% in February of this year and some retirement experts were concerned that it would drop below the psychological 2% barrier; however this risk of this has seemingly been averted.
Relief for Income Drawdown investors
The news will ...