Retirement: Fall in GAD rate hits Income Drawdown investors

Falling profitsPensioners who have chosen to use Income Drawdown to turn their pension pot into an income, could be hit by a fall in the GAD rate and consequently see their incomes cut. Falling gilt yields mean that the GAD rate will be cut in March from 3.25% to 3%. Our advisers can help you make the right decision...

Retirement: New hope for Income Drawdown investors?

If recent press articles are to be believed there might be new hope for Income Drawdown investors, some of whom have been hit by falling incomes of up to 50%. Income Drawdown, also known as Capped Drawdown, has long been one of the most popular ways, along with buying an Annuity, to take an income from a pension; however retirees who have selected this option have seen their incomes fall in recent years. Worried about your Income Drawdown plan? ...

Income Drawdown: Government says no change despite falling incomes

The government has indicated it will make no changes to help Income Drawdown investors faced with cuts to their annual incomes. Income Drawdown, or Capped Drawdown as it is now more properly known, allows retirees to draw  directly from their fund albeit with a cap on the annual income which can be taken. The maximum allowable income is set by the Government Actuary Department and as is often known as the GAD rate. GAD rates for Income Drawdown investors The GAD rate is linked to your gender and the 15 year gilt rate, which over recent months has fallen significantly, resulting ...

Income Drawdown: GAD rate rises slightly

Income Drawdown investors received a small sliver of good news last week after it was announced that the maximum income available has risen slightly. The maximum income allowable from Income Drawdown plans is set by the Government Actuary’s Department and is known as the GAD rate. It is calculated by using the retiree’s age, gender and crucially the yield on 15 year gilts. The GAD rate has fallen as low as 2.25%; however it was announced last week that from 1st March 2012 this figure will rise by 0.25% to 2.5%, meaning a slight improvement in the maximum income available. The ...