Flexi-access Drawdown

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Similar to flexible drawdown there are no limits of what you can drawdown, however you do not require a minimum level of secure income required to get access to it. Individuals in flexi-access drawdown are entitled to make contributions up to £10,000 (2023/2024).

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Flexible Drawdown

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This type of income drawdown has disappeared with funds automatically converting into Flexi-acess drawdown. Before 5 April 2015 individuals aged over 55 who met the minimum income requirement (MIR) per annum, were able to drawdown an unlimited amount out of their funds and treated as income for tax purposes.

 

Capped Drawdown

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It is no longer possible to designate funds into a new capped drawdown arrangement since April 2015. After you have taken your tax free cash your remaining funds are invested and designed to give your an income. This income is not guaranteed for life and the maximum is calculated using GAD (Government Actuary's Department) tables. Income is capped at 150% and is reviewed every 3 years until age 75.

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Money-purchase annual allowance (MPAA)

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If you’ve flexibly accessed your benefits, the Money Purchase Annual Allowance (MPAA) is the amount that can be paid in one year to your money purchase arrangements without a tax charge applying.  For the 2023/24 tax year the MPAA will be £10,000.