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Article: Disaster for income drawdown pensioners.
- Article from:
- Investors Chronicle - magazine and web content
- Article date:
- April 1, 2009
CopyrightCOPYRIGHT 2009 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Moira O'Neill
Quantitative easing is bad news for retirees in income drawdown
Pensioners in income drawdown are being hit by a dramatic drop in the Government Actuary's Department (GAD) rate. This is severely curtailing their ability to take income, at a time when their pensions pots may also have lost value.
The GAD rate - which is updated monthly - is used to regulate how much income can be drawn from a pension pot by pensioners who are drawing income directly rather than buying an annuity. Before the age of 75, retirees can take up to 120 per cent of GAD rates as income from their pension pots. After age 75 they can take between 55 ...