If you are considering Income Drawdown as a retirement option then this handy and simple income drawdown calculator will help you find out how much the allowable HMRC income will be for your pension fund. The income drawdown calculator shows very quickly the maximum allowable after taking your tax free cash.
The income that can be taken from an Unsecured Pension arrangement can be varied each year between a minimum and a maximum. The minimum is £0 and the maximum is 100 per cent of a pension calculated according to tables produced by the Government Actuaries Department GAD. These tables are based on the amount your fund would buy as an annuity based on your life only and with no allowance for any future increase. The maximum amount needs to be recalculated every 3 years. You can use our income drawdown calculator to help you work this amount out.
GAD Calculator
GAD (Government Actuaries Department) rate tables determine the amount of income you can take. The main factor in working out the income that can be taken from a income drawdown (pension drawdown) is the current Gilt Index Yield. The yield that is used in any given month is the yield on 15-Year Gilts as published in the Financial Times on the 15th day (or the next available date if the 15th falls on a weekend) of the previous month, and rounded down to the nearest quarter of a percent (unless it is an exact quarter of one percent anyway) and rounded down to the nearest quarter of a percent (unless it is an exact quarter of one percent anyway).
Capped Drawdown Calculator
Capped Drawdown is the same as income drawdown and pension drawdown. After the pension simplification changes of April 2011, another definition is now applied – namely ‘Capped Drawdown’.