The maximum withdrawal permitted under a capped drawdown arrangement will rise from 100 per cent to 120 per cent to of the value of an equivalent annuity for new drawdown years commencing after 26 March 2013. Existing legislation will be amended to remove the requirement to recalculate the maximum drawdown pension after a pensioner with fixed protection transfers to another scheme.

The Treasury has commissioned the Government Actuary’s Department to review the pensions drawdown table and the assumptions used to provide drawdown rates, to ensure they reflect the annuity market.