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
November 2024 - 4.25%   December 2024 - 4.50%
Age £   Age £
23, 24, or 25 44   23, 24, or 25 46
26 44   26 46
27 45   27 47
28 45   28 47
29 45   29 47
30 45   30 47
31 45   31 47
32 46   32 48
33 46   33 48
34 46   34 48
35 46   35 48
36 47   36 49
37 47   37 49
38 47   38 49
39 48   39 50
40 48   40 50
41 48   41 50
42 49   42 51
43 49   43 51
44 50   44 51
45 50   45 52
46 50   46 52
47 51   47 53
48 52   48 53
49 52   49 54
50 53   50 55
51 53   51 55
52 54   52 56
53 55   53 57
54 55   54 57
55 56   55 58
56 57   56 59
57 58   57 60
58 59   58 61
59 60   59 62
60 61   60 63
61 62   61 64
62 63   62 65
63 65   63 67
64 66   64 68
65 68   65 70
66 69   66 71
67 71   67 73
68 73   68 76
69 75   69 78
70 77   70 81
71 80   71 83
72 82   72 84
73 85   73 87
74 88   74 90
75 92   75 93
76 96   76 97
77 100   77 102
78 105   78 107
79 111   79 112
80 117   80 118
81 123   81 125
82 130   82 132
83 138   83 140
84 147   84 148
85 or over 156   85 or over 158

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