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Do you offer capped drawdown?

Do you offer capped drawdown?

No, and we don’t accept transfers of pensions that are in capped drawdown. Capped drawdown is a way of withdrawing money from your pension that was available to investors until April 2015.  

If you are using capped drawdown with your current pension provider, you’ll need to switch to flexi-access drawdown with them first and then transfer to us.  

As it’s no longer available, if you leave a capped drawdown arrangement you won’t be able to go back into one after you’ve switched to flexi-access drawdown.  

How to check if you are in capped drawdown

  • You must have started taking money from your pension before 5 April 2015. 
  • Look at your most recent drawdown illustration from your current pension provider. In the current benefits section you’ll see a ‘Current max income’ and ‘Next review date’. 
  • If you’re still not sure, phone your pension provider before starting a transfer. 

There are advantages and disadvantages to capped drawdown and you should consider these carefully before switching to flexi-access drawdown.  

Advantages of staying in capped drawdown 

You can continue contributing more to your pension. Whereas with flexi-access drawdown you will be limited to contributing £10,000 per year once you’ve started taking an income.  

Disadvantages of staying in capped drawdown 

You’re limited on the maximum amount you can withdraw from your pension per year. This is set by the Government Actuary’s Department and is reviewed every three years until you’re 75, then every year after that.  

With flexi-access drawdown on the other hand, there are no restrictions and you can withdraw as much of your pension as you like.

Need more help?

Our UK-based team is ready to answer your questions

If you are an existing client, please send us a secure message using the Inbox feature within your account. This will help us respond with information specific to you.


If you are new to Vanguard, please send us a message with email.

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