January GAD rate set at 3.25%

This means from January a 65-year-old income drawdown client with a £100,000 fund will be able to take £7,320 a year instead of the previous £7,080 maximum, according to LV=. Ray Chinn, head of pensions and investments at the provider, said: "For the majority of people, retirement is no longer an absolute event whereby they hit 65 and leave the workplace forever. It's become a phased event and income drawdown fits very neatly into that space. "Indeed, one of the reasons clients use income drawdown is because it allows them to turn the ‘income tap' on and off. For those clients that co...