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Notional income from unclaimed pension pot and Government Actuary’s Department tables
In relation to pension freedoms since 2015 and unclaimed pension pots, for people over PC qualifying age, Housing Benefit Circular A7/2015 provides guidance to local authority housing benefit decision makers as to how to value the notional income from an unclaimed pension pot. Paragraph 12 contains the following:
The HB Guidance Manual advises that the amount of notional income to be taken into account is the maximum amount of income that may be withdrawn from the pension pot. From 6th April 2015, you should take this to mean 100% of the rate of annuity that the pension pot would generate in line with the Government Actuary’s Department (GAD) table (HB Guidance Manual, Chapter BP2, paras 2.680 to 2.687).
Anyone got any idea where the GAD tables can be found please? I’ve done some searching but I’m doubting the results of my googling.
Many thanks in advance.
Sounds like a job for Gareth Morgan.
Is it this?
Sounds like a job for Gareth Morgan.
Is it this?
Yes, they’re what I’ve found but it’s like reading Latin, trying to understand the contents and what they’re actually about.
Now it sounds even more like a job for Gareth - bet he’s fluent in Latin, which he will prove by posting a Latin joke that we have to run through google translate before pretending to get it
Now it sounds even more like a job for Gareth - bet he’s fluent in Latin, which he will prove by posting a Latin joke that we have to run through google translate before pretending to get it
Haha, anything is possible once Mr Morgan gets involved…..
That is they - Jus scriptum
All you have to do is look up the 15 year Gilt rate in the table found at https://markets.ft.com/data/bonds . Click on ‘Table’ and read down to 15 year. Today’s figure is 1.70%. Round that down to the nearest .25% which gives 1.5%. In the GAD table then read across to 1.5% in the Gilt Index Yield row and down to the persons age. e.g. age 67 gives you a result of £53. That is how much per annum per £1000 of pension savings is the notional annuity. SO for someone with £27,632 of savings they would have a figure of £1,464.50 annuity per year.
Or you could use Ferret’s Notional Pension Income Reckoner - 2018 / 2019, included with our calculators..
[ Edited: 17 Apr 2018 at 07:54 pm by Gareth Morgan ]Gratias ago tibi valde Gareth.