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.
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To give you the right options please select your original policy provider below
Fund prices
You can find out more about funds here
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.
