Budget 2014 - Changes to Pensions and ISAs
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Capped drawdown pension<br />
With a capped drawdown pension there's a maximum amount that can be drawn each year but<br />
no minimum amount. This annual limit is calculated by the pension plan administra<strong>to</strong>r based on<br />
the value of the pension plan <strong>and</strong> fac<strong>to</strong>rs set by the Government Actuary's Department.<br />
Flexible drawdown pension<br />
To qualify for flexible drawdown an individual must already be getting a pension of at least<br />
£12,000 each year from 'secure pensions' such as the State Pension, most lifetime annuities <strong>and</strong><br />
pensions paid from defined benefits schemes. Prior <strong>to</strong> 27 th March <strong>2014</strong> this amount was<br />
£20,000.<br />
With flexible drawdown there's no limit on the amount that can be drawn from the pension<br />
scheme in any year.<br />
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