New drawdown rate for March 2012
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The new basis amount (GAD rate) for calculating the maximum income withdrawal from drawdown pension funds has changed to 2.5% with effect from 1st March 2012.
This is 0.25% higher than the February 2012 rate and means that the GAD rate is one notch about its lowest level ever.
Using rates based on the March 2012 GAD rate of 2.25% the maximum drawdown income for a man aged 65, with a Capped Drawdown pension fund of £100,000, will be £ 5,600.
For a woman aged 65, with a Capped Drawdown pension fund of £100,000, the maximum annual income allowable will be £5,300.