Capped drawdown

Capped drawdown is a form of drawdown, which has a maximum annual amount. A maximum annual amount was calculated when you first entered capped drawdown, and this is recalculated by your pension scheme every three years if you are under 75, or every year if you are over 75. You can choose to take nothing, or any amount up to the maximum amount each year. Capped drawdown is no longer available as a retirement option, but existing arrangements remain until such time as they are converted to flexi-access drawdown arrangements.