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Tax free lump sum/ income drawdown
MOUNTY
Posts: 89 Forumite
Have i the option to take all of my 25% tax free lump sum from my Sipp at the start of income drawdown or can i take % at start date (55) then remainder at (60).
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Comments
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You can do phased drawdown which would do what you want to achieve. However, you should not take less than 25% on the amount you do crystallise as you cannot take the difference later.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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If the 'restriction' of crystallising just part of the pension (and therefore suffering lower drawdown limits) bothers you, why don't you simply take the full 25% now. Use the proportion that you want to use now. Put the remainder into the exact same investments you would have used in the SIPP [this is usually broadly possible - either under a S&S ISA, or even outside provided you can 'manage' any liability for CGT.]?
The net result would be virtually the same.0
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