Income Drawdown
Flexi-access Drawdown
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 and drawing an income are entitled to make contributions up to £10,000 (2026/27).
to drawdown an unlimited amount out of their funds and treated as income for tax purposes.
Capped Drawdown
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.
Money-purchase annual allowance (MPAA)
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 2026/27 tax year the MPAA will be £10,000.