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
January 2025 - 5.00%   February 2025 - 5.00%
Age £   Age £
23, 24, or 25 46   23, 24, or 25 46
26 51   26 51
27 51   27 51
28 51   28 51
29 51   29 51
30 51   30 51
31 51   31 51
32 52   32 52
33 52   33 52
34 52   34 52
35 52   35 52
36 53   36 53
37 53   37 53
38 53   38 53
39 53   39 53
40 54   40 54
41 54   41 54
42 54   42 54
43 55   43 55
44 55   44 55
45 56   45 56
46 56   46 56
47 57   47 57
48 57   48 57
49 58   49 58
50 58   50 58
51 59   51 59
52 60   52 60
53 60   53 60
54 61   54 61
55 62   55 62
56 63   56 63
57 63   57 63
58 64   58 64
59 65   59 65
60 66   60 66
61 68   61 68
62 69   62 69
63 70   63 70
64 72   64 72
65 73   65 73
66 75   66 75
67 76   67 76
68 78   68 78
69 80   69 80
70 82   70 82
71 85   71 85
72 87   72 87
73 90   73 90
74 93   74 93
75 97   75 97
76 101   76 101
77 104   77 104
78 111   78 111
79 116   79 116
80 122   80 122
81 129   81 129
82 136   82 136
83 144   83 144
84 152   84 152
85 or over 161   85 or over 161

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