The maximum amount of income that can be paid from a drawdown plan is determined by reference to tables produced by the Government Actuary's Department (GAD).
To ensure that the maximum income drawn from a drawdown fund is set at a sustainable level, GAD produces a set of special tables based on a range of interest rates. Every month a new income drawdown limit is set for new drawdown applications with reference to the yield on 15 year gilts.
You can calculate your maximum income drawdown rate by using our online Drawdown income calculator
There is a compulsory review every three years to ensure that the pension fund can sustain future income payments. At the review the maximum income limits are set for the next 3 years.
Income can be varied each year so long as it is kept within the GAD limits. Any unused income entitlement cannot be carried forward to the next year.
Income withdrawals can be paid monthly, quarterly, half yearly or annually and can be in advance or arrears.