Seeking regulated advice ‘vital’ after reforms: LV=

People must take regulated advice in order to make the most of their income in retirement, Ray Chinn of LV= has said.

Speaking as the Government Actuary’s Department announced that the GAD rate for December 2014 had risen from 2.25 per cent to 2.5 per cent, the head of pensions and investments said: “People approaching retirement now have even more choice and control over how they arrange their retirement income.

“It is vital that pensioners consider alternative solutions to standard lifetime annuities such as income drawdown, investment-linked or fixed-term annuities to ensure that they structure their income in a way that best suits their individual needs.

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“We would also always encourage people to take regulated advice, in order to get the most from their retirement income.”

Figures show that, from December, the amount a 65-year-old income drawdown client can take from the fund will be £56 per £1,000. This means that a 65-year-old client with a £100,000 fund will be able to take £8,400 from their pension fund.