Annuity vs Income Drawdown Rates
Drawdown Rates
The following tables in the adjacent tabs 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 150% withdrawal producing an increase in annual income over annuities.
The FTSE 15-year gilt yield of 2.00% has been used from the GAD tables and shows the increase or decrease in annual income from a pension drawdown plan when compared to the highest standard pension annuity.
Income drawdown rates -unisex
Fund size: £100,000 (after taking £33,333 tax free cash)
FTSE 15-year gilt yield: 2.00% (May 2015)
| UNISEX Annuity vs Drawdown | |||
| Age | Annuity | Drawdown | More / Less |
| 55 | £4,406 | £6,150 | £1744 |
| 60 | £4,945 | £6,900 | £1955 |
| 65 | £5,499 | £7,950 | £2451 |
| 70 | £6,350 | £9,300 | £2950 |
| 75 | £7,775 | £11,550 | £3775 |
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 150% withdrawal. Income drawdown is a higher risk pension than annuities and not suitable for everyone. For a pension drawdown quotation specific to your circumstances please contact Credencis.
The table shows the best standard annuity rates currently available online, paid monthly in advance, for an annuity purchase price of £100,000. The rates are based on an average postcode and basic personal details, so you could receive more or less income when you come to find your own personal annuity rate. Postcode is an important factor affecting annuity rates so it’s essential you use your personal postcode when calculating your annuity.
For an annuity quotation specific to your circumstances please contact Credencis.