GAD income drawdown

Are looking for information about GAD income drawdown? Perhaps you’re on an older Capped Drawdown plan and are keen to avoid losing the benefits of this pension type by inadvertently exceeding the cap.?

Either way, you’ve come to the right place. We’ve put together a comprehensive guide on this very subject, and you’ll find the following topics covered below…

 

 

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We can arrange a free pension review for you today

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What is GAD income drawdown and how does it work?

GAD stands for the Government Actuary Department. This organisation sets the maximum allowable income amount that you’re allowed to ‘draw down’ from your pension, every year. This figure is referred to as the GAD rate.

 

How is the GAD rate calculated?

The income drawdown GAD rate is calculated through a formula tied to yields on FTSE 15-year gilts, and is worked out based on your age. As returns on 15-year gilts fluctuate, this can change over time.

 

The rate is unisex, and recalculated every year up to the age of 75. Once you turn 75, it’s revisited every year.

It works like this: your age is assigned a number, such as 55, which can be calculated to work out the amount of ‘basic pension’ you can drawdown for every £1,000 in your fund.

 

 

So, for example – if your GAD rate was 50, and you had £100,000 in your fund – your ‘basic’ pension would be £5,000 a year.

This figure is then increased by 150%, giving you a total maximum of £7,500 a year.

 


 

Where can I find up-to-date pension drawdown GAD rates?

If you want to see the current GAD income drawdown tables, the government publishes them on its guidance page.

The table you need will mainly depend on the reference period for your pension (i.e. the date you started to draw down).

Since GAD rates can fluctuate, speaking to an pensions advisor is recommended over taking rates table information at face value. The experts we work with can offer you bespoke advice based on your needs and circumstances and factor in any forecast rates changes.

Make an enquiry to speak with one of them over the phone today.

 


 

What should I do if I need help calculating the GAD rate on my pension?

There’s a couple of options. Pension Wise is a free and impartial government service that can provide a certain amount of guidance if you have a personal or workplace pension.

If you want a little more ‘hands-on’ help, you could consider speaking to a pensions expert. We work with a range of friendly advisors who can help you to see how much you can take out and, more importantly how much you should take out – based on your unique needs and circumstances. Want to find out more? Get in touch.

 

Should I use a GAD pension drawdown calculator?

You can find GAD pension drawdown calculators on many pension providers’ websites financial hubs.

One thing to keep in mind, though, is that GAD pension drawdown calculators can only serve up raw data without context. They do not take your needs and circumstances into account, or flag up incoming rate changes.

This is why speaking to a pensions expert is a better option – they can calculate your GAD rate for you, put this data into perspective and offer bespoke advice for your retirement plans. Make an enquiry to speak with one today.

 


 

Speak to a pensions expert

If you have questions and want to speak to an expert for the right advice, call us today on 0808 189 0463 or make an enquiry.

Then sit back and let us do all the hard work in finding the pensions expert with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

We can arrange a free pension review for you today

70% of customers who have a pension review find a better deal

We can arrange a free pension review for you today

70% of customers who have a pension review find a better deal

The GAD rate you end up with will depend on your age, but, as a rule of thumb – the older you are, the higher your rate.

 

 

 

It works like this: your age is assigned a number, such as 55, which can be calculated to work out the amount of ‘basic pension’ you can drawdown for every £1,000 in your fund.

 

 

So, for example – if your GAD rate was 50, and you had £100,000 in your fund – your ‘basic’ pension would be £5,000 a year.

This figure is then increased by 150%, giving you a total maximum of £7,500 a year.

 


 

Where can I find up-to-date pension drawdown GAD rates?

If you want to see the current GAD income drawdown tables, the government publishes them on its guidance page.

The table you need will mainly depend on the reference period for your pension (i.e. the date you started to draw down).

Since GAD rates can fluctuate, speaking to an pensions advisor is recommended over taking rates table information at face value. The experts we work with can offer you bespoke advice based on your needs and circumstances and factor in any forecast rates changes.

Make an enquiry to speak with one of them over the phone today.

 


 

What should I do if I need help calculating the GAD rate on my pension?

There’s a couple of options. Pension Wise is a free and impartial government service that can provide a certain amount of guidance if you have a personal or workplace pension.

If you want a little more ‘hands-on’ help, you could consider speaking to a pensions expert. We work with a range of friendly advisors who can help you to see how much you can take out and, more importantly how much you should take out – based on your unique needs and circumstances. Want to find out more? Get in touch.

 

Should I use a GAD pension drawdown calculator?

You can find GAD pension drawdown calculators on many pension providers’ websites financial hubs.

One thing to keep in mind, though, is that GAD pension drawdown calculators can only serve up raw data without context. They do not take your needs and circumstances into account, or flag up incoming rate changes.

This is why speaking to a pensions expert is a better option – they can calculate your GAD rate for you, put this data into perspective and offer bespoke advice for your retirement plans. Make an enquiry to speak with one today.

 


 

Speak to a pensions expert

If you have questions and want to speak to an expert for the right advice, call us today on 0808 189 0463 or make an enquiry.

Then sit back and let us do all the hard work in finding the pensions expert with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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We can arrange a free pension review for you today

70% of customers who have a pension review find a better deal

We can arrange a free pension review for you today

70% of customers who have a pension review find a better deal

Author:
Tony has worked in a vastly diverse array of areas in the pensions industry for over 2 decades. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events. Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been "Hope for the best, but PLAN for the worst", and believes that the biggest impact that an adviser can have on a client's life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they WANT their retirement to be.

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