My Pension Expert announce GAD rates set to rise to 3% the highest since November 2011, good news for hard pressed retirees

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GAD rates set to rise to 3% next month meaning that the average 65 year-old with £100,000 invested will now be able to withdraw an extra £120 a year, lifting the annual income cap to £7,080.

My Pension Expert
This increase in GAD rates is positive news for retirees as it will mean they are able to withdraw a larger sum of money each year, which will help relieve some of the financial pressure they may be under.

The maximum income that can be taken from income drawdown and fixed term annuity contracts - the GAD rate - will rise to 3% next month, the highest since November 2011.

GAD rates are set by the Government Actuary's Department each month influenced by the movement in gilt yields, which are low risk loans to the government. Strong service and manufacturing data in the UK as well as good US job figures seem to have convinced more investors to stay away from the safe haven of UK government bonds and gilts and invest elsewhere. This decrease in interest in gilts has forced the debt office to steadily increase its rates in an attempt to attract new investors. As a result GAD rates have also steadily risen and are set to reach a two year high of 3% next month. Scott Mullen from My Pension Expert said, "This increase in GAD rates is positive news for retirees as it will mean they are able to withdraw a larger sum of money each year, which will help relieve some of the financial pressure they may be under."

Monitor GAD rates and their impact on the investments at retirement at My Pension Expert for regular news and updates.

My Pension Expert is a company of Diploma Qualified Financial Advisors specialising in options at retirement.

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