Income Drawdown or Annuity ?

Pension Annuity Phone Number : 0845 83 87 811
Best Pension Annuity Home Seperator Free Quotes Seperator Pension annuity seperator Tax Free Cash Seperator income drawdown seperator pension lump sum seperator annuities abroad seperator
Annuties and Retirement Products for Customers Overseas
Best Pension Annuity Social Media Visit the Best Pension Annuity page on Facebook Best Pension Annuity on Google+ Learn about Annuities and Drawdown on our YouTube Channel Business Connections
Best Pension Annuity is a trading style of Platinum Financial Consulting LTD     
Income Drawdown Customer Protection  
Check us now on the FCA Register. Number 827778
Pension Fraud Protection  

Pension Income from Drawdown increases again.

The government have announced a further increase to the rate used to calculate the income received by customers who use an income drawdown contract.

The trade newspaper Money Marketing reported on 19th December, that this rate has increased by 1% in the last 12 months and currently stands at 3.25%. But what does that mean for drawdown users ?

Unlike a conventional annuity where the amount of income is set for life, income drawdown customers have more flexibility and control over how they take their income. There are a number of potential benefits for customers which include the ability to turn their income on and off, to set it at a level that meets their needs (subject to the maximum limit) and if they achieve good investment returns, there is also the potential to increase the value of their fund and / or retirement income. Of course the reverse side of the coin is that poor or negative investment returns would have exactly the opposite impact with the fund value falling and therefore the potential maximum income.

Many customers whose primary concern is to take the maximum income possible from their pension fund, and a willing to take a longer term risk on the income being sustained into the future, opt for a drawdown contract. The income calculation method which we will discuss below means that typically a customer will initially receive considerably more income using a Drawdown contract than they would if they used an annuity.

The maximum possible income a customer can take from their drawdown contract is based on the following variables – The customer’s age, their fund value and anticipated mortality levels. This information is used by the Government Actuarial Department (commonly referred to as GAD) to produce tables used by Drawdown providers to calculate the maximum income. As an example the variables above may indicate that a customer could take £5,000 per annum. The customer has the choice to take anything between 0% and 120% of this figure. This means that the customer can take a maximum income of £6,000 per annum if they wish.

The GAD calculation is constantly revisited for the duration of the contract, these reviews (based on the variables discussed above) can result in the potential maximum income either going up or down, or possibly remaining the same.

If you want to understand more about income drawdown contracts and receive quotes showing the difference between drawdown and an annuity call us on 020 33 55 4827 and a member of our team would be more than happy to provide further information.


Click here for FREE quotes
Income Drawdown Extra Benefits
Income Drawdown Couple

Highest Initial Income ?

If you want the highest possible income from your pension fund, income drawdown may help you achieve this goal.

drawdown or annuity left
drawdown seperator
Drawdown panel right FREE Income Drawdown quotes and information pack Button divider drawdown or annuity Ask us a question about Income Drawdown Beach Drawdown Left
Drawdown quotes and callback
drawdown guide and questions
Request an Income Drawdown Callback Free Income Drawdown Guide
Income Drawdown Beach Income Drawdown guide to your PC
There are many different uses for Income Drawdown which we would be happy to discuss with customers on a no obligation basis. If you would like a comprehensive guide to income drawdown please use the panel of the above right to request income drawdown quotes and we will send everything direct to your email account.
Annuity or Tax Free Cash Footer

Cookies Policy : The website does not use cookies and nothing is downloaded to your PC or Device

The information contained on this website is for information purposes only.

This website DOES NOT contain personal advice based on your circumstances.

Platinum Financial Consulting
Platinum Financial Consulting LTD

Registered in England. Company Number : 5985049

Registered Office Address :
The Old School House, East End Road
Bradwell-on-Sea, Essex, CM0 7PY

Telephone : 020 33 55 4827           Fax : 0871 277 1422           Email :


Copyright © 2009 & 2024 Platinum Financial Consulting

FCA Registration Number : 827778

Keep up to date with annuity rate changes and other retirement issues  
If you are nearing retirement keep up to date with annuity rate changes by subscribing to our news feed

Pension Annuity Specialists