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 information please view the Gov.UK website.

Government Actuary’s Department (GAD) table
July 2022 - 2.50%June 2022 - 2%
Age£Age£
23, 24 or 253123, 24 or 2527
26312628
27312728
28322828
29322928
30323029
31323129
32333229
33333330
34333430
35343530
36343631
37343731
38353831
39353932
40354032
41364133
42364233
43374333
44374434
45384534
46384635
47394736
48394836
49404937
50415037
51415138
52425239
53435340
54445440
55445541
56455642
57465743
58475844
59485945
60496046
61516147
62526249
63536350
64556451
65566553
66586655
67606756
68616858
69636960
70667062
71687165
72717267
73737370
74777473
75807577
76847681
77887785
78937890
79997995
8010580101
8111181108
8211882115
8312683122
8413484131
85 or over14385 or over140

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