Modeling GAD Limits

Q. With the new 'Planned Withdrawals' feature, I see there are no longer GAD limits. How can I manually simulate GAD limits within the new set up?

A. You are correct, GAD limits are not part of the new 'Planned Withdrawals' feature. To replicate GAD limits, the steps are:

1. Crystallise the relevant pension to release any tax free cash, if not already done. Do this in the Money Purchase screen by selecting the relevant pension in the Ledger, expanding Withdrawals & Annuity > Crystallisation of Money Purchase. Select % of account value 100% in Crystallised Amount and % of Crystallised Amount 25% or tax free cash only in Lump Sum:

2. In the Drawdown Pension screen, select the relevant drawdown pot from the Ledger and expand Advanced Settings > Withdrawal Limit.  Set the withdrawal limit to 'scheduled only' if they are drawing max GAD income. If they are drawing less, set the withdrawal limit to the monetary amount of the max GAD income (annual amount). This will limit the withdrawals the software can take from the pension.

If the withdrawal limit needs to be changed at a future point, you can do so using Advanced Settings > Step Up/Step Down in the Drawdown Pensions screen.

3. In the Planned Withdrawals screen set a withdrawal from the drawdown pot using fixed w/o inflation, set to the monetary amount of what they are actually drawing from the pension (annual amount). Set the timing of the start and end of the income in the 'Time' panel on this screen. See an example below:

If the income needs to be increased or decreased at a future point, you can do so using Advanced Settings > Step Up/Step Down in the Planned Withdrawals screen.