Income Drawdown: New report shows effect of falling gilt yields

A new report from MGM Advantage, a provider of retirement solutions, has shown just what a devastating effect falling gilt yields are having on the income of many Income Drawdown investors. Falling gilt yields and Income Drawdown Our advisers can help you make the right decisions The Investment Sense team of Independent Financial Advisers in Nottingham Contact our ...

Pensions: QE affecting Annuity rates, government should do more to help

A committee of influential MPs has said that the government should be doing more to help retirees affected by falls in Annuity rates due to the Bank of England’s policy of Quantitative Easing (QE). Falling Annuity rates Reporting back on the recent Budget, the Treasury Committee said that QE was causing Annuity rates to fall and that “lax monetary policy” was “particularly penalising savers.” Any pension Annuity calculator will show how far Annuity rates have fallen in recent months, caused in no small part by falling gilt yields, which are one of the side effects of the Bank of ...

Income Drawdown: GAD rate rises again

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 ...

Calls for a review of Income Drawdown and Annuities

Labour are calling for a commission to investigate falling retirement incomes. Plummeting gilt yields have pushed Annuity rates lower and also reduced the maximum level of income available from Income Drawdown plans causing financial hardship to many existing retirees and would be retirees. Free pension Annuity calculator Pension Annuity calculator Do your own Annuity rates comparison with our real time pension Annuity calculator Annuity rates ...