Pensions - Articles - LV= responds to the rising GAD rate

 Ray Chinn, LV= Head of Pensions and Investments said:

 "The latest GAD announcement sees the rate rise to its highest level since November 2011 which is good news for those approaching retirement. With standard lifetime annuities perceived to offer poor returns for retirees, alternatives such as income drawdown and fixed term annuities should be considered. These alternative income solutions offer much greater flexibility and greater choice in retirement than a standard lifetime annuity, and the GAD rate increasing to 3.00% makes these options even more attractive.

 "Figures show that, from September, the amount a 60 year income drawdown client can take from their fund will increase from £51 to £53 per £1,000. This means that a 60 year old with a £100k fund will be able to take £6,360 rather than £6,120 from their fund.

 "It is important that those approaching retirement look at the wide range of solutions available to them and shop around before deciding how to structure their income, as the retirement landscape has evolved considerably over the years. Considering all the options available will help retirees to maximise their pension fund."