Defaqto: 120% GAD rate not fit for permanent use

The chancellor confirmed in last week's Autumn Statement that there won't be any changes to Government Actuary Department (GAD)-based drawdown rules, Defaqto insight analyst Richard Hulbert said the 120% cap on income drawdown should be used as only a "holiday" and advisers who opt for a level above an annuity rate should be asked to explain how they would monitor their clients' retirement funds. He warned that drawing out at 120% consistently will not last investors a ‘lifetime' and the regulator should have done more to clarify that point for advisers, when the chancellor brought th...