Income drawdown Government Actuaries Department GAD rate held at 3.5% for October, which is unchanged from the September figure.
Data from Retirement Partnership says this means for a man aged 60 with a £100,000 fund, the maximum income would be £6,840. For a 65 year old man with the same fund, the maximum would be £7,800.
For a woman aged 60 with £100,000 saved, the maximum would be £6,480, and for a woman at 65, the maximum would be £7,200.
Income drawdown allows retirees to take up to a maximum of 25% of their pension fund as tax free cash and the remaining invested fund can be drawdown down anything from 0% and 120% of the GAD rates.
GAD historic data
Looking at the GAD historic rates the two months of September and October have been the lowest since April 2009. You can check out the GAD historic data here. GAD historic data
The government has also indicated it is reviewing the UK pension system and income drawdown could be one of the areas that benefits from this review, with new products lined up to make income drawdown more flexible.