Capped Drawdown and Capped Income Drawdown
From April 2011 a new capped income drawdown will be available and it will allow annual withdrawals between £0 and 100 per cent of the basis amount, the basis amount is based on what a lifetime annuity would be for the fund size and age.
With the capped income drawdown this is a change from the current maximum which is 120 per cent of the basis amount for under 75s and 90 per cent if over 75.
Current rules also changing are the requirements to take an income of 55 per cent of the basis amount after age 75.
Under current drawdown rules the drawdown limit is reviewed every 5 years, this will change to every three years until age 75 and then annually.