Sipp and ex serps 25% and inc drawdown

averageguy11

In a couple of years i will be 50 and i intend to take 25% cash and use the inc drawdown 'opportunity' on my sipp...will this b possible on my exerps policy which contains a fair amount of protected rights?

TIA for any help

dunstonh

SIPPs cannot accept protected rights at this time. Its on the cards but keeps getting put back and we are getting different news week to week on whether it will be coming or not.

However, fund supermarket pensions, hybrid SIPPs or personal pensions can do that.

One thing to note is that from April 2010, the minimum age to take benefits goes to 55. I'm nore sure if you couple really means 2 years or not.

averageguy11

This is probably my fault...the serp contribution is in a personal pension..my query over taking 25% and inc drawdown is because of the protected rights...i'm not sure how this works.

Re age..i jus sneak in b4 it goes up to age 55

TIA

dunstonh

income drawdown doesn't have to be in a SIPP. There are a number of fund supermarkets, hybrid/insured SIPPs or personal pensions that can do it and at this point, it would be one of those that you use. What your options will be in 2 years we cant say.

SIPPs may be able to take it then, maybe not. SIPPs may not be as cheap as they are now as they become regulated in April and that ramps the costs up significantly (it is anticipated that the number of SIPP providers will halve over the coming years).

A number of providers are planning to launch post A day pensions shortly on revised platforms and software. These may or may not impact on choice of provider/product (both Scottish Widows and Selestia post A day products can beat HL for example under the right circumstances).

Really, its better off waiting until you are closer. However, yes, at this time you can do what you want to do (just not in a full SIPP).

EdInvestor

You should be OK.It looks as though the remaining differences between PR and non-PR money (including allowing it in SIPPS) will be removed early next year, after the DWP finishes a survey on spouse's annuities slated to complete at end-2007.

The Treasury has already put a provision into the Finance Bill enabling it to change the regulations without further legislation, so it's almost a done deal.Most of the restrictions have already been removed.

averageguy11

Thanku 4 yur comments