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
June 2022 - 2%May 2022 - 2%
Age£Age£
23, 24 or 252723, 24 or 2527
26282628
27282728
28282828
29282928
30293029
31293129
32293229
33303330
34303430
35303530
36313631
37313731
38313831
39323932
40324032
41334133
42334233
43334333
44344434
45344534
46354635
47364736
48364836
49374937
50375037
51385138
52395239
53405340
54405440
55415541
56425642
57435743
58445844
59455945
60466046
61476147
62496249
63506350
64516451
65536553
66556655
67566756
68586858
69606960
70627062
71657165
72677267
73707370
74737473
75777577
76817681
77857785
78907890
79957995
8010180101
8110881108
8211582115
8312283122
8413184131
85 or over14085 or over140

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