pension drawdon from sipp from APril 15

hazelh

I am wondering after April, if already in drawdown, and you want to increase the amount, is it just a case of contacting your SIPP provider and telling them?

jamesd

Yes.

However if you want to draw more than the GAD limit you would have to switch to their Flexi-access drawdown product and there may be different charges for that compared to their capped drawdown product. There may also be a charge for each change of income level or for taking a lump sum.

mgdavid

duplicate post; OP please don't ask the same question on the same board more than once!

hazelh

I don't think this is a duplicate post as previously I was asking about advice. I will speak to my provider but thank you for the response above the last one as that was interesting.
I asked because I had seen a document which indicated that people have to wait for their next review to change drawdown
which seemed to fly in the face of other indications that you can drawdown above the GAD rate from April.

gadgetmind

Can't you draw down 150% of the GAD rate right now?

jamesd

Your individual GAD limit will be adjusted only at the annual review date. However, the change from 120% or 100% of the GAD annuity equivalent rate to 150% applies to all, so your drawing limit has probably increased. You can adjust as much as you like within that limit at any time and still be in capped income drawdown. So whether you can increase now depends on how much of your GAD limit amount you have used, after allowing for the 150% of GAD calculation change.

What happens in April is that Flexi-access Drawdown is added as an alternative to the Capped Income Drawdown that you are using now. Flex-access removes the GAD limit on how much you can take out each year.

So to know what you can do now you'd first need to know your GAD limit calculated amount, then whether that was calculated on 120%, 100% or 150% basis. If it was on 120% or 100% you can increase what you take out to 150% now unless your particular pension provider doesn't want to allow that.