GAD reduction - what does it mean for you?

Under the old government GAD rules you could take an income of 20 per cent greater than would be available through lifetime annuity, through the purchase of either a fixed term annuity or placing your pension into pension draw down. But, from April, the GAD limit will be the same as the annuity limit.

Those wishing to access the maximum income through fixed term annuities or income draw down have until April 11th to act. Alternatively, for those already in draw down, certain insurers will allow a GAD review now, thereby fixing the income available at maximum GAD for a further five years.

Ask your adviser if you would like any further information on this or how it will affect you.

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