The maximum annual capped drawdown pension income is determined with reference to the value of the member’s fund that is being used for capped drawdown (‘capped drawdown fund’), the member’s age and the relevant GAD rate.

The relevant GAD rate, which will depend on the UK medium/long dated gilt yield at that time, is used to calculate the amount of ‘basic pension’ that can be drawn for each £1,000 of the member’s capped drawdown fund. For example, if the GAD rate for a member is £53 per £1000 and their capped drawdown fund is £100,000, their basic pension would be £5,300 p.a. This is then uprated by 150% to give a maximum capped drawdown pension income of £7,950 p.a., which will need to be recalculated every three years up to age 75 and annually thereafter.

For more informaiton please view the Gov.UK website.

Government Actuary’s Department (GAD) table
June 2020 - 0.50%May 2020 - 0.50%
Age£Age£
23, 24 or 251823, 24 or 2518
26182618
27192719
28192819
29192919
30203020
31203120
32203220
33213321
34213421
35213521
36223622
37223722
38223822
39233923
40234023
41244124
42244224
43254325
44254425
45264526
46264626
47274727
48274827
49284928
50295029
51295129
52305230
53315331
54315431
55325532
56335633
57345734
58355835
59365936
60376037
61386138
62406240
63416341
64426442
65446544
66466646
67476747
68496849
69516951
70537053
71567156
72587258
73617361
74647464
75677567
76717671
77757775
78807880
79857985
80918091
81988198
8210582105
8311283112
8412084120
85 or over12985 or over129

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