The capped drawdown rate for July will remain at 2.25 per cent, data from the government actuary’s department has revealed
This means a 65-year-old income drawdown client can take £55 a £1,000 from his fund. A 65-year-old client with a £100,000 fund will be able to take £8,250 from his pot.
Ray Chinn, LV=’s pensions and investments head, said: “Following the advent of flexible access drawdown, the GAD rate no longer determines the maximum income savers can take from their pension.
“However, it retains relevance for those we have seen who chose to remain in capped drawdown to prevent a reduction in their future annual allowance limit for tax relief.”
