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: Boost for Income Drawdown investors

Boost - Blue ButtonRetirees who use Income Drawdown to turn their pension into an income, rather than an Annuity, have been given a boost as rising gilt yields have increased the maximum amount of income which can be taken each year. Income Drawdown is the traditional alternative to an Annuity purchase and allows the retiree to remain invested in a range of assets, often including stocks and shares, whilst drawing an income directly from the pension fund. Income Drawdown rates rise The maximum income which ...

Annuities: Why delaying your Annuity purchase could be very costly

iStock_000006992053XSmallAs Annuity rates show signs of increasing, many would-be retirees might be tempted to delay their Annuity purchase, but new research shows this could prove to be a costly mistake. Figures from Annuity provider MGM Advantage, show that the lost income resulting from a two year delay in buying an Annuity, could take between 37 and 41 years to recover; well above the remaining life expectancy of the average retiree. Delaying an Annuity purchase As gilt yields have started to rise and Annuity ...

Annuities: Annuity rates drop by 29% since Quantitative Easing started

Falling profitsNew research has confirmed the devastating impact Quantitative Easing has had on Annuity rates. The figures, from AXA Life Europe, show since Quantitative Easing was introduced by the Bank of England in March 2009, Annuity rates have dropped by 29%. Annuity rates have been falling for some years due to increased life expectancy. However, the research from AXA provides confirmation, if any were really needed, that Quantitative Easing has pushed Annuity rates significantly lower. The Bank of England has previously ...