take all out of SIPP, flexible drawdown?

qwertyjjj

My family have 2 SIPPS (ie 1 each), which they are ready to withdraw. They have other income but the value of these SIPPS is about £30k and they want to withdraw that and make a lump sum payoff to an investment mortgage.
With the 25% tax fee, we are looking at about:
SIPP £33000
Tax free: £8250
Annual income £2,110 (=8.4% of the remaining)

Is there anyway to get the remaining bulk amount out of the SIPP?
I know there is something called flexible drawdown but you need to have a:
state pension, a pension annuity or a company pension. They only have a state pension all other income is investment income.

they have some other pensions:
company is £7006 gross p/a.
State Pension estimate is appx £4576pa + a lump sum of £20,000

Flexible drawdown:
You must already have a secure pension income of at least £20,000 a year in place. This can include your state pension, a pension annuity or a company pension. Investment income and money from income drawdown don't count. Pension pots not needed to provide the £20,000 could be taken as flexible drawdown. Remember - pensions can be split, with part used to buy an annuity to secure the necessary income and the remainder taken as flexible drawdown. You must receive at least £20,000 of pension income in the tax year you enter flexible drawdown.

Does this mean that if you take a lump sum in year 1 over £20k, that you can just enter flexible drawdown and take everything out of the SIPP?

Linton

No - the 20K income must be guaranteed pensions such as State Pension, company pension or an annuity.

qwertyjjj

the 2nd SIPP is only £3,500
so, after the tax free sum it's going to cost a lot to administer every year just for income drawdown especially after age 75 as hargreaves have to re-do the assessment every year

Thrugelmir

8.4% rate of drawdown seems high.