-- Annuity v Income Drawdown rates --
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Drawdown rates
The following tables assumes a pension fund of
£100,000 net of the £33,333 taken as a tax free lump sum from an
original fund of £133,333. The highest annuity rates are
on a standard single life, level with no guarantee basis and the
income drawdown plan is based on a 120% withdrawal producing an
increase in annual income over annuities.
The FTSE
15-year gilt yield of 3.50% has been used from the GAD tables and
shows the increase or decrease in annual income from an income
drawdown plan when compared to the highest standard pension annuity.
Income Drawdown rates - Males
|
Fund size: £100,000 (after taking £33,333 tax free cash)
|
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| MALE Annuity vs Drawdown | |||
| Age | Annuity | Drawdown | More / Less |
| 55 | £5,291 | £6,120 | £829 |
| 60 | £5,908 | £6,840 | £932 |
| 65 | £6,493 | £7,800 | £1,307 |
| 70 | £7,332 | £9,120 | £1,788 |
| 74 | £8,435 | £10,800 | £2,365 |
|
The annual rates shown above are based on a purchase price of £100,000 and should be used as a guide only. Income drawdown assumes a maximum 120% withdrawal. Income drawdown is a higher risk pension than annuities and not suitable for everyone. For a pension drawdown rate specific to your circumstances you should complete the drawdown quote. |
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Income Drawdown rates - Females
|
Fund size: £100,000 (after taking £33,333 tax free cash)
|
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| FEMALE Annuity vs Drawdown | |||
| Age | Annuity | Drawdown | More / Less |
| 55 | £5,185 | £5,880 | £695 |
| 60 | £5,630 | £6,480 | £850 |
| 65 | £6,116 | £7,200 | £1,084 |
| 70 | £6,907 | £8,280 | £1,373 |
| 74 | £7,919 | £9,480 | £1,561 |
|
The annual rates shown above are based on a purchase price of £100,000 and should be used as a guide only. Income drawdown assumes a maximum 120% withdrawal. Income drawdown is a higher risk pension than annuities and not suitable for everyone. For a pension drawdown rate specific to your circumstances you should complete the drawdown quote. |
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