Just like rain: How to cope with falling GAD rates

RETIREMENT PLANNING

clock • 4 min read

Andy Zanelli, head of retirement planning at AXA Wealth, suggests some options for your retiring clients as GAD rates hit the floor and finding income becomes more difficult.

This is a summer like no other. The Diamond Jubilee celebrations, the Olympics and, of course, the unseasonal weather! This season also marks an event which, like the recent incessant rain and cloud, has cast a shadow over retirement planning - the continuing erosion of the Government Actuary Department (GAD) rates which, for August, have hit their floor of 2%. This trend began in September 2009 (see table on page 3) and signals a real concern for advisers as to the short and medium-term impact upon clients, particularly those who are in drawdown and where the provision of higher leve...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Hitting milestones later in life could impact when people seek advice

Hitting milestones later in life could impact when people seek advice

People will likely be seeking financial advice later

Laura Suter
clock 19 April 2024 • 3 min read
Regulatory pressures taking a toll on industry stress levels

Regulatory pressures taking a toll on industry stress levels

'Regulatory pressures are the first thing on my mind’

Sahar Nazir
clock 19 April 2024 • 1 min read
Advisers blast FCA funding requirement of £755m 'inexorable'

Advisers blast FCA funding requirement of £755m 'inexorable'

‘I don’t really know what value I’m getting from the FCA – if any’

Hope Coumbe
clock 19 April 2024 • 2 min read