What the drawdown rate rise means for clients

DRAWDOWN

Jenna Towler
clock

September's GAD rate is the highest since November 2011. Jenna Towler finds out what it means for retirees.

Pensioners using income drawdown were given a boost when the government announced the maximum amount that can be withdrawn would increase to 3% in September. The rate – set by the Government Actuary's Department (GAD) on behalf of HM Revenue & Customs – is the maximum drawdown pension that can be taken through income drawdown. The last time it stood at 3% was November 2011. However, it is still well below the 4% mark reached in May of that year. It has been hovering around 2% to 2.5% for the intervening years. Good news? So should drawdown be considered for all retirees or is it ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

M&G launches fixed term annuity as it re-enters market

M&G launches fixed term annuity as it re-enters market

Fixed term of between five and 15 years on £10,000 minimum lump sum

Jenna Brown
clock 12 March 2025 • 2 min read
L&G reports record annuity sales of £2.1bn for 2024

L&G reports record annuity sales of £2.1bn for 2024

New business sales of annuities up 48%

Linus Uhlig & Jenna Brown
clock 12 March 2025 • 3 min read
Annuity rates surge again as market sees continued revival

Annuity rates surge again as market sees continued revival

Annuity rates see 70% increase compared to four years ago

Martin Richmond
clock 11 March 2025 • 3 min read