How much income can I take?
The income limits are based on the value of your SIPP on the day drawdown starts. They are calculated using tables produced by the Government Actuary's Department (GAD) and are referred to as the GAD limits.
The maximum income is roughly equivalent to the income a conventional annuity would provide using the same fund value. You can take any amount you choose up to the maximum income each pension year.
There is no minimum income so you can choose to take no income at all if you wish.
Since 6th April 2011 there is also a flexible drawdown option which removes the cap on your income, allowing you to take as much income as you like when you like. However not all investors will be eligible.
Your income limits will be reviewed at least every three years. If your fund value has fallen due to poor investment performance or excessive income withdrawals your new maximum income could be lower. It is not always sustainable to draw the maximum income as you could deplete the fund leaving you short of income later in retirement.