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 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 ...

Flexible Drawdown: How can it help you?

Flexible Drawdown How can it help youFlexible Drawdown was introduced in April 2011 and after a slow start seems to be gaining momentum, with more and more  people taking advantage of the flexibility it offers certain people. There seems to be three main ways in which people are using Flexible Drawdown, we thought we’d take a brief look at each, showing how you could benefit from Flexible Drawdown....

Light at the end of the tunnel for Income Drawdown investors?

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 ...