Capped drawdown explained

Capped drawdown is a type of pension that allows you to withdraw money from your pension pot while keeping it invested.  Since 6 April 2015, it’s no longer possible to set up new capped drawdown policies.

The amount you can withdraw from these policies each year is limited by rates set by the Government Actuary’s Department (GAD). This is currently set at 150% of the ‘equivalent annuity’ rate, and is used to make sure you get a similar income to an annuity customer. If you want to change the amount you’re withdrawing from your current capped drawdown policy you should call 0800 073 1777.

As money in capped drawdown policies stays invested you could still benefit from investment growth while taking an income. However, like all investments values can go down as well as up, and your policy value will reduce as you make withdrawals.

It’s now possible to take more from a drawdown policy than the limits described above, but you can’t do this from your existing capped drawdown policy. If you’re a current ReAssure capped drawdown customer who would like to increase their withdrawals above the GAD limits, you can find out how by using our Retirement Planning Toolkit.

Related documents

Use the drop down below to get the documents and help you need

Fund prices

Money paid into the policy buys units in one or more investment funds. The value of these units can go up or down in line with the investments that make up the fund, affecting the final value when money is taken.

The easiest way to start searching for fund information is to look at your most recent annual statement and type in the name of one of your funds into the search box below. From this we’ll be able to show you funds that are only available to customers from your original policy provider and your fund type.

Please note that not all funds will be available for your particular policy, so you should look at your policy documents to find out what you can invest in. Remember if you look at the total charges for any of the funds, you may also have product charges too. You can find out about these from your policy documents.

The majority of our prices are shown online in pence (GBX) apart from former Alico funds which are shown in pounds (GBP).

The value of the units is not guaranteed and can go down as well as up.

Useful documents

Click here to access useful documents for ReAssure funds

Important information

The information made available on Morningstar’s tool is taken from a variety of sources and is for general information purposes only. The information has not been tailored to your particular circumstances and does not constitute a personal recommendation or financial advice.

If you need assistance in reviewing your investments, you should speak to a Financial Adviser. You can find a Financial Adviser in your area at unbiased.co.uk.

You should also read Morningstar’s general disclaimer here

Money paid into a policy is invested in a with-profits fund, together with the savings of other policyholders.  Bonuses may be declared by ReAssure and added to the policy, depending on how the investments in the with-profits fund perform.

There are three with-profits funds that ReAssure customers are invested in:

  • The Guardian Assurance With-Profit Fund
  • The National Mutual With-Profit Fund
  • The Windsor Life With-Profit Fund

If you’re not sure which with-profits fund you’re invested in, you should look at your most recent annual statement or bonus notice.

Guardian Assurance
With-Profit Fund

National Mutual
With-Profit Fund

Windsor Life
With-Profit Fund

How do I make a claim on a capped drawdown policy?

If you’re looking to make a claim on a capped drawdown policy as the policyholder has died, please call us and we’ll put you in touch with one of our claims handlers to help you start your claim.