Capped Income drawdown savvy

Iancfp

Drawdown income is taxed under PAYE so rate will take account of personal allowances other income etc once tax office gets your details

gadgetmind

Iancfp wrote: »

Drawdown income is taxed under PAYE so rate will take account of personal allowances other income etc once tax office gets your details

So, are you better combining all your (probably many!) sources of drawdown?

I'm going to have at least SIPP, Group PP, and Protected Rights pots, and I'm shortly either going to move the SIPP or start another pension elsewhere (without an odious 5% bid/offer spread) for lump sum payments. (Yes, I could use my GPP, but its Pension Input Period is "interesting".)

Iancfp

gadgetmind wrote: »

So, are you better combining all your (probably many!) sources of drawdown?

Well tax office will cope with multiple but generally better to run 1 drawdown for charges as well as control issues

jamesd

For some pension providers charges are lower for larger amounts invested so there's merit in combining so long as you can get the investment choices that you want. To get the investments you want there may be merit in splitting between providers. I may end up with three while contributing: work GPP to get salary sacrifice, Skandia to get lower charges and HL for access to some things that Skandia doesn't offer. After 55 I expect to end up with at lest three: drawdown, new contributions, investment flexibility again. Protected rights are still scheduled to vanish and become part of normal pots next year so that'll eliminate one plan or partial plan.