![]() ![]() You don’t have to move out of capped drawdown if you don’t want to. However, if you were in capped income drawdown contract you won’t have been switched over automatically and you have a decision to make. That’s why it was renamed flexi-access drawdown. Capped income drawdown is closed to new members.Īnyone who was previously using flexible drawdown was automatically converted to flexi-access drawdown after the new pension freedoms. The pension freedoms removed this income divide for pension drawdown and offered everyone who wanted to use it flexible access to their pension. Converting Capped Drawdown To Flexi-Access Drawdown ![]() Those without this income had to use capped drawdown, which placed a limit on the amount that you could draw down from your pension of 150% of a single life annuity that a person of the same age could purchase based on Government Actuary’s Department (GAD) rates. However, it was only available for those with a guaranteed retirement income elsewhere of £12,000. Given that drawdown was first introduced more than 20 years ago, it’s not surprising that many people who entered into drawdown pension contracts before the April 2015 pension freedoms might be wondering what happens to their pension now.īefore the pension freedoms there were two drawdown options: capped income drawdown and flexible income drawdown.įlexible drawdown is most similar to today’s new flexi-access drawdowncontracts in that it didn’t place a restriction on how much of your pension you could take as income. ![]()
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