How often is the GAD limit calculated?

The GAD limit is calculated on the start date and must be reviewed at least every three years until age 75. You may request a new GAD calculation on any anniversary of the plan; this will start a new three year period.

If you move further funds into a partial income drawdown arrangement, a review of the GAD limit is triggered. The new GAD limit will take effect immediately unless the new income limit is lower, in which case it will take effect on the anniversary of the plan. This type of review will not start a new three year period. This review may result in a lower maximum income.

If you use some of your income drawdown funds to purchase an annuity the GAD limit will be recalculated but the new limit will not apply until the next anniversary of the plan start date. Again this will not start a new three year period.

After age 75, the GAD limit is reviewed annually on each anniversary.