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Autumn Statement: Gov't restores 120% GAD rate for drawdown
by William Robins on Dec 05, 2012 at 13:10
The income limit on capped drawdown arrangements will be increased from 100% to 120%, restoring the 20% uplift, chancellor George Osborne has announced.
Those in capped drawdown will now be able to take income at 120% of GAD rather than 100%,
Before 2010 reforms took effect individuals could take 120% of the income level set by GAD. This was reduced to 100% in order to prevent investors from depleting their savings too quickly.
Only people who could secure a £20,000 annual income could drawdown an unlimited amount.
In recent months MPs have come under mounting pressure from retirees hit by cuts of up to 50% in their income as the GAD rate has tracked annuity rates downward.
In November New Model Adviser® revealed the government was considering relaxing the GAD limits in the Autumn Statement.
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iShares: Time to shatter the ETF myths
As result of industry changes - the retail distribution review - and a growing focus on cost-efficient solutions, we anticipate the number of investors using ETFs will rise significantly over the coming years.
But as with any newer product, especially in the financial world, various misconceptions about ETFs have perpetuated over the years and iShares is committed to addressing and ultimately dispelling these.
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