Updated GAD Rates – Effective 1 September 2025

HMRC has updated the GAD tables used to calculate maximum income from Capped Drawdown pensions. These new rates reflect current economic and actuarial data and must be used from 1 September 2025. They’ll be applied to all reviews, calculations, and communications from that date.

What is Capped Drawdown?

Capped Drawdown allows customers to take income while keeping their pension invested. It was closed to new applicants in April 2015, but existing users continue under the original rules.

Customer impact

Maximum income limits may go up or down, depending on age and fund value. Customers will see changes at their next review or if they request a recalculation. No separate mailing will be issued. This is a standard practice and helps ensure sustainable retirement income.

Please note: GAD tables are published by the Government Actuary’s Department and used to set annual income limits for capped drawdown pensions.

If you would like more information, please get in touch with your usual Aberdeen contact or call us on 0345 279 1001 for our Client Engagement Hub (Wrap) or call on 0345 600 2399 for our Elevate operations.