This is a small move, but a step in the right direction as the rate of GAD for the last two months has been at record low levels.
(PRWEB UK) 17 December 2012
My Pension Expert has revealed today that the GAD rate for January is set to increase to 2.25% up from the record low level of 2% which the rate fell to in November. The rate determines the maximum level of income that can be taken from income drawdown plans and fixed term annuities and will allow some small relief for new retirees in the New Year.
The significance of the rate increase is higher given that the Government has now moved to allow the maximum income level for GAD to return to 120% of the rate after pressure form the retirement industry. This is expected to take effect in the spring of 2013 and coupled with the higher rate of GAD will see the amount of allowable income for these types of plan increase by a meaningful amount.
Scott Mullen of My Pension Expert the annuity specialists said, “This is a small move, but a step in the right direction as the rate of GAD for the last two months has been at record low levels. This will hopefully ease some of the significant pressure on the newly retired population looking for different options to the standard life time annuity”.
My Pension Expert is a company of diploma qualified Independent Financial Advisers who specialise in options at retirement.