Guidance

Drawdown tables for calculations for use from 1 September 2025 — instructions

Updated 27 March 2025

Introduction

From 6 April 2011, drawdown pension replaced unsecured pension and alternatively secured pension as the way in which an individual takes pension income (through income withdrawal or a short-term annuity) from a money purchase arrangement in a registered pension scheme without purchasing a lifetime annuity or a scheme pension. These tax rules for drawdown pension removed the effective requirement for annuity purchase at age 75. From 6 April 2015 onwards, a drawdown pension may be paid either from a ‘capped’ drawdown pension fund already in existence before that date, or from a flexi-access drawdown fund (all new drawdown funds designated on or after 6 April 2015 are flexi-access drawdown funds). With the introduction of Pensions Freedoms in April 2015 the income drawdown tables remain relevant for a smaller group of policyholders.

The basis amount calculations explained in these instructions are, from 6 April 2015, relevant only to continuing ‘capped’ drawdown pension funds, as there is no maximum income withdrawal limit for flexi-access drawdown. Where a ‘capped’ drawdown pension fund has converted on or after 6 April 2015 to flexi-access, then basis amount calculations are no longer required. These instructions apply both to members’ and dependants’ capped drawdown funds.

The scheme administrator of a ‘capped’ drawdown pension fund needs to determine the maximum level of drawdown pension that may be paid from such a fund. The maximum amount needs to be calculated when the member first becomes entitled to such a pension and at 3 yearly intervals thereafter, unless a fresh calculation is required because one of the following 5 events occurs:

1. Some of the drawdown pension fund has been used to purchase a lifetime annuity.

2. Some of the drawdown funds have been used to provide a scheme pension.

3. The drawdown pension fund is reduced by a pension sharing order.

4. The member has designated additional funds as available to provide drawdown pension.

5. The member has requested an earlier review date and the scheme administrator has agreed to this.

Where events 1 to 4 occur, the reference period is unchanged. Where event 5 occurs, a new 3 year reference period starts from the end of the pension year in which that event occurred. Where events 1 to 3 and 5 occur, the revised limit applies to future pension years only. For the pension year in which the event occurs, the limit for that year remains the same. So where one of events 1 to 3 occurs in the last pension year of a reference period, no recalculation is required. However, where event 4 occurs, the revised limit applies to the pension year in which the event occurs as well as future years. Where a recalculation results in an increase in the income limit this applies immediately, however, if the income limit falls as a result of the recalculation, despite the designation of additional funds, this reduced limit will not apply until the next pension year. 

A calculation is still required for event 4 where it occurs in the last year of a reference period. 

For event 5, a new reference period is being set so the calculation is carried out as at the first day of the new reference period but with the opportunity to nominate an earlier date within the 60-day window as for the formal 3 year review.

On reaching age 75 the current 3 year reference period ends with the pension year in which the member’s 75th birthday falls. Thereafter the amount is recalculated annually at the beginning of each pension year. For the first pension year following that in which the member reached age 75, the calculation must be carried out on the day immediately before the member’s 75th birthday unless the scheme administrator opts to use the 60-day window (ending with the first day of the new pension year, not the member’s 75th birthday). For succeeding pension years the calculation is carried out on the first day on the pension year subject to the 60-day window.

The maximum amount of drawdown pension that may be paid from a given date is based on a basis amount calculated at that point or at an earlier nominated date, where the 60 day window is available and has been used. The basis amount is calculated using tables compiled by the Government Actuary’s Department (GAD). This document comprises the tables and explains how to use the tables which are published on this page with instructions for their use.

This document also includes further details of the assumptions used in constructing the tables.

Instructions for the drawdown pension tables to calculate the basis amount

There are separate tables to calculate the basis amount for pensioners and children where a dependants’ drawdown pension is being paid to a child. These tables are:

• Table 1 for a pensioner who is aged 23 or over, regardless of sex

• Table 2 for a pensioner aged under 23, regardless of sex (this will usually be a child receiving a dependants’ drawdown pension)

Table 1 applies to both pensions for scheme members and pensions for dependants receiving dependants’ drawdown pensions.

In 2011, the European Court of Justice ruled in the case of Test Achats that the use of gender as a risk factor by insurers should not result in individual differences in premiums and benefits for men and women. Therefore, separate tables should be used for men and women for the period between 6 April 2011 to 21 December 2012 (these are available on GOV.UK) but the same table (Table 1) should be used for both women and men aged 23 or over after that date. 

The basis amount shown in the tables is designed to provide a measure of the annual amount of lifetime annuity income that the drawdown pension fund could generate for the member at the point of calculation.

For the first calculation in respect of a drawdown pension fund, the point of calculation must be the date that entitlement to a drawdown pension first arises, that is, when the member first designates some of the funds held in her or his arrangement to be used to provide a drawdown pension. This will be the first day of the first ‘reference period’.

For subsequent calculations for drawdown pension funds the point of calculation will be the ‘nominated date’. This may differ from the ‘reference date’ where the scheme administrator has taken advantage of the 60-day window to nominate an earlier date. Or it may be the date on which some other event (see the first paragraph of the introduction) affects the value of funds held in a drawdown pension fund, in which case no 60-day window can apply except in the case of event 5. In other words, the 60-day window is available where the member’s request for a review has been accepted.

The amount of lifetime annuity that the fund could generate will generally be related to the member’s age and to the yields available on gilts (UK government bonds), which are the main investments usually used by insurance companies which sell lifetime annuities. Hence, to access the correct figure from the relevant table it is necessary to determine the member’s age at the point of calculation, and to access information on gilt yields at the same date.

The tables apply only to calculations with points of calculation on or after 31 January to 1 September 2025. For points of calculation before that date refer to the alternative appropriate tables and instructions apply on this page .

These tables and instructions apply equally to drawdown pensions that are, or include, protected rights and non-protected rights. However, administrators of pension funds that include both protected rights and non-protected rights should be aware of the relevant legislation and guidance about operating such arrangements.

Procedures for determining the basis amount in detail

Step A

Establish the date that is the point of calculation. For the first calculation for a drawdown pension fund, this is the date the member first designates some of the funds held in her or his pension arrangement to be used to provide a drawdown pension. That is, when entitlement to a drawdown pension first arises. Where the member is not yet aged 75, this is the first day of the first ‘reference period’. Where the member is 75 or over when they first take benefits, it is the first day of the first drawdown pension year (the recalculation is done annually so there is no reference period). At subsequent reviews the point of calculation will either be the ‘reference date’ for the review, that is the first day of the ‘reference period’ covered by that review, or it may be the ‘nominated date’ where a 60-day window is being used. On one of a number of other circumstances (events 1 to 4) which trigger a review, the point of calculation is the day on which the event occurs which alters the value of the drawdown pension fund. The 60-day window can be used for event 5.

Step B 

Calculate the age in complete years of the pensioner at the point of calculation — this is the age attained by the pensioner at her or his last birthday before the date of the point of calculation. Call this age X. 

Step C

Obtain the yield (strictly a gross redemption yield) on UK gilts (15 years) from the FTSE UK Gilts Indices, as published daily in the Financial Times newspaper, for the 15th day of the calendar month before the calendar month in which the point of calculation falls. Where the pensioner is under 23, the 5 years yield should be used. These yields are published in the Financial Times on the following day. If the 15th day of the preceding calendar month is not a working day, obtain the corresponding yield for the working day immediately preceding the 15th.

At the time of writing the UK Gilts Indices are published on the Financial Times website.

Use the date filter to select the 15th of the previous month, then choose the Report ‘FT500, Fixed incomes, Commodities, Interest rates’ by downloading the PDF.

Step D

The yield obtained at Step C must be rounded down to the next 0.25% (¼%). For example, 4.12% is rounded to 4%, and 5.39% is rounded to 5.25%. If the yield obtained at Step C is an exact multiple of ¼%, no rounding is required. Call this yield Y. If the yield obtained at step C is less than 0%, yield Y is treated as if it were 0% in Step E.

Step E

Obtain the basis amount per £1,000 of fund from:

• Table 1 (if the pensioner is a man or woman aged 23 or over)

• Table 2 (if the pensioner is aged under 23)

by extracting the figure applicable to age X (see Step B) and yield Y (see Step D). Call this £A.

Step F

Determine the amount of the drawdown pension fund at the point of calculation. Call this amount £F. 

Step G

The basis amount is calculated as:

(£F ÷ £1,000) × £A

The results of this whole calculation should be rounded to the nearest penny.

Worked example

Barbara designates £100,000 of a money purchase arrangement to provide a drawdown pension from her 60th birthday (21 December 2025).

Step A — the point of calculation is the ‘reference date’ of the calculation, that is, the date of designation, 21 December 2025.

Step B — Barbara’s age at the point of calculation, the ‘reference date’, is 60. 

Step C — consider the yield on UK gilts for 15 November 2025 (the 15th day of the calendar month preceding that in which the point of calculation and ‘reference date’ falls). The yield for 15th November 2025 is published in the Financial Times on the following working day. 

However, in this worked example, 15 November 2025 is a Saturday. Use the yield as at 14 November 2025 published on 17 November 2025. Assume for the sake of the example that the yield for 14 November 2025 was 4.03%. 

Step D — the yield obtained at Step C, rounded down to the next 0.25% (¼%) is 4%. 

Step E — Barbara is a woman aged 23 or over, therefore use Table 1. The relevant figure, based on age 60 and yield 4% is £62. 

Step F — the amount of the drawdown pension fund at the point of calculation and ‘reference date’ is £100,000. 

Step G — the basis amount is calculated as:

(£100,000 ÷ £1,000) × £62

= 100 × £62

= £6,200

This result should be rounded to the nearest penny.