Anyone who has done an Annuity rates comparison in recent months will confirm just how far Annuity rates have dropped, mainly due to plummeting gilt yields. But it isn’t just Annuities which have been affected, people with Income Drawdown plans are in many ways the hidden victims of falling gilt rates.
Maximum Income Drawdown income
The maximum amount which can be taken from an Income Drawdown plan is set by the Government Actuary’s Department. Known as the GAD rate it is also linked to gilt yields and has consequently fallen significantly over the past year or so.
In fact the ...