GAD tables query

gericom10

After checking the GAD tables I have calculated a mamimum figure of £8,100

Am I correct that this is the amount that I can drawdown each year?

If the investments perform ok, would this be an approximation of what I could expect each year till I reach 75?

I have come across on some of the threads talk of ' 120% ' , how does this relate to the £8,100?

thanks for any answers

EdInvestor

Try cross checking here:

http://www.invidion.co.uk/pension_fund_withdrawal_calculator.php

In addition to your age, gender and size of fund, you also need to know the relevant gilt yield.

The drawdown rate is 120% of what the GAD tables show, after you factor in all those items.

The amount you can extract will rise as you get older, assuming that your fund does not go down in value.You can ask for a revaluation of your fund annually if it has gone up and you want to get more out.You are only however required to have it revalued every five years.

Obviously if your investments don't perform it would not be wise to dig into your capital,unless you have other sources of income such that it doesn't matter, or intend to take the full amount out and reinvest any surplus in tax free wrappers such as your ISA.