SIPP Help

scubydoo

Hi all I have a SIPP worth around 28k an want to know under the new rules how much I can drawdown in April I have asked the SIPP Centre This


Would you please advise me under the new government legislation on pensions what is the maximum amount I can draw from my SIPP in April 2015?



Also what do I have to do to increase the amount I can take out?



And when do I need to notify you of any changes I wish to make for the April drawdown


The email below was the reply I got on 31 October 2014 are they stalling for some reason and does anyone know the answers please


Thank you in anticipation as it all seems a bit vague!


Thank you for your email.

I have referred your query to our technical team to ask for clarification of the options post April 2015. As soon as I have the relevant information, I will come back to you.


I then received this email on the 3rd November


Thank you for your email.

At present, as the legislation isn’t finalised yet, we haven’t confirmed what information we will need from clients who wish to access the new flexibility, but we will communicate with clients before April and let you know what we need.

greenglide

If you are 55 or over then as things stand at the moment you will be able to withdraw all of it, with tax payable on all but 25% of it.

However if the legislation isnt passed or changes then things could change.

This is why the scheme won't tell you. They are generally not allowed to rely on rumour and until the legislation is passed that is what it is.

mgdavid

How old will you be next April?
I have a strong feeling you are asking the right question but of the wrong people.
Maybe you are not even asking the right question? Do you have other pension provision besides the SIPP? What are your financial plans and objectives for living in retirement?

dunstonh

At present, as the legislation isn’t finalised yet, we haven’t confirmed what information we will need from clients who wish to access the new flexibility, but we will communicate with clients before April and let you know what we need.

That is the general line most providers are taking because legislation is not yet in place, there is a possibility of tweaks and adjustments and they have to work out what they want to do and what they can do within their systems with their product in terms of functionality.

Also, they are not advisers. So, they cant answer advice related questions. They can only give factual answers in either a generic form or specific only to their product.

scubydoo

Hi Greenglide when is the legislation supposed to be passed? thanks for that.


mgdavid I will be 56 in April I took my pension just before the age limit went up to 55 I put the money into a Sipp with the intension of taking immediate drawdown thereby maxing the cash then due to my health problems, I wanted to transfer the cash immediately to an Annuity due to the massive enhancement offered because of my life expectancy, the pension advising company told me they had not been able to get the annuity done before the deadline due to the rush so I would have to leave it in the Sipp until I was 55 because of the tax I would have to pay so the money has been sat in the Sipp with me taking drawdown. I can survive and I am living on borrowed time, I just want the cash out if possible to make the most of it whilst I can I am not in a position to manage the Sipp due to memory problems brought on by my treatment, it would be great if I can extract the cash.

DaveMcG

scubydoo wrote: »

when is the legislation supposed to be passed?

You can follow it here

http://services.parliament.uk/bills/2014-15/taxationofpensions.html

It will almost def be passed before the general election, but there can be amendments to the proposed legislation or associated statutory instruments. There could even be a delay putting the new regulations into force even if the law is passed.

Linton

DaveMcG wrote: »

You can follow it here

http://services.parliament.uk/bills/2014-15/taxationofpensions.html

It will almost def be passed before the general election, but there can be amendments to the proposed legislation or associated statutory instruments. There could even be a delay putting the new regulations into force even if the law is passed.

According to your link Royal Assent is due today. However I believe the SIPP providers still need to be told the implementation details - eg information for HMRC.

beme

from April 2015 it is believed that you will need to apply for Flexi access drawdown which will enable you to draw from your SIPP without any annual limits, like there are currently. What providers will no be able to tell you yet is what is required to apply for flexi access drawdown as because this isn't in place yet there procedures etc will not be confirmed and forms they needs will not be finalised at this moment. But as above this will always be subject to changes from HMRC. hopefully not though