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Flexible Drawdown?
Comments
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It would be good if a 'Professional' could confirm that is the case. Seems odd that this has not been confirmed by one of the usually helpful guys.
Hit me where it hurts. I thought I was a professional.So even though I have existing pensions of £14,654 and have contributed substantially to other pensions that have now been transferred into a SIPP, I am unable to convert any of that to a secure income ?
Of course you can. All your money in the SIPP can be converted into a secure income, by way of a Lifetime Annuity (which is different from a Purchased Life Annuity, you understand?).
Also, if £14,654 is excluding the state pension, you will be able to include that into the calculation - when it becomes available to you.
P.S - You'll have to excuse me if some of this has already been covered, I haven't read the entire thread.0 -
What would be the point in committing accessible savings to an annuity to release an equivalent amount of pension money which would be taxable when you draw it, even if it were possible?
Just buy the required annuity from the SIPP and take the remainder as tax free lump sum + flexible drawdown."Things are never so bad they can't be made worse" - Humphrey Bogart0 -
Apologies mania112, didn't mean to be rude, but no idea who is a financial professional if it's not mentioned on their site. Point taken.
My annual State pension is presently £14,566.56 and I get an old occupational pension of £1,063.68. I need another £4396.76 to get to £20k.
If I therefore convert some of my SIPP pension fund to buy a lifetime annuity and make up my secured pension to the required £20,000 pa, it would allow me to use the remaining pension fund in the SIPP either as a conventional drawdown, or take whatever amount I like from it, subject to tax. Is that correct? ( as stated by redbuzzard)
SamI'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0 -
If I therefore convert some of my SIPP pension fund to buy a lifetime annuity and make up my secured pension to the required £20,000 pa, it would allow me to use the remaining pension fund in the SIPP either as a conventional drawdown, or take whatever amount I like from it, subject to tax. Is that correct? ( as stated by redbuzzard)
Sam
Sam, yes, you can do that.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0 -
Thanks GhIFA, at last I understand. Pensions have always been a little vague with me, whilst other areas of finance have been good. I think the SIPP is more complex than I originally thought. Good to know I can control the entire 'pot' once I have secured my £20k income.
SamI'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0 -
If I therefore convert some of my SIPP pension fund to buy a lifetime annuity and make up my secured pension to the required £20,000 pa, it would allow me to use the remaining pension fund in the SIPP either as a conventional drawdown, or take whatever amount I like from it, subject to tax. Is that correct? ( as stated by redbuzzard)
Sam
Make sure your SIPP provider will allow partial annuitisation. Some don't and will only allow "all or nothing" annuity purchase.I am an Independent Financial Adviser specialising in Pensions and Retirement Advice.
Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Should be OK with H. L.
SamI'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0 -
Really? I don't think I've encountered one that bad, but I'll bear it in mind next time I scour the market!richardg_ifa wrote: »Make sure your SIPP provider will allow partial annuitisation. Some don't and will only allow "all or nothing" annuity purchase.I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0
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