Start capped drawdown now if 55 and paying £10k into pension

dinosaur7

Apologies if this is a very stupid question, but I'm a bit confused by the new rules.


My husband has a small pension and put this into drawdown last year, taking the 25% tax free lump sum, but choosing not to take any income (although the GAD calculation has been done). As he isn't taking any income, but is technically in drawdown, I'm not quite sure whether this means he will be subject to the £10k limit on contributions in future or not?


Sorry, I forgot to mention - he might well want to take a chunk out of this pension when pensions freedoms kicks in, and this would be over the GAD limit. Hence the concern over whether he will be considered to be in capped drawdown already or starting after the April date.

dinosaur7

Bless HL, they are open on Saturdays and answered the above question. I panicked and posted before I realised this!


I know that a lot of people on this board are very knowledgeable but, just in case anyone else out there gets as confused as I do, here's what they said:


Apparently, if you go into drawdown after the April deadline you will have the option of taking a flexi-drawdown plan and this will mean that the £10K limit applies. It seems that having gone into capped drawdown already, even without taking income, has avoided the future limit because the GAD calculation has been done already.