Capped drawdown

A type of drawdown that was available before 6 April 2015, when flexi-access drawdown was introduced.

In capped drawdown, the amount you can take from your pension is limited depending on your age, your pension pot value, and the rate of interest on a specific type of UK government bond. The idea was to restrict withdrawals so people’s pension pots last throughout their retirement. The maximum annual income limit is usually reviewed every three years until age 75, and annually thereafter.

Although capped drawdown is no longer offered, you may still be in capped drawdown if you accessed your pension before 6 April 2015. If so, you can stay in capped drawdown, or choose to convert to flexi-access drawdown.