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Is there a minimum time to have a SIPP before taking benefits?

How long do you have to invest in a SIPP for before taking the cash back out?
My wife only has her occupational pension and is near retirement age. Can she open a SIPP, pay in the maximum allowed to the SIPP and then shortly afterwards take the money out again with a 20% gain or does it have to run for a certain time? If so how long?

Comments

  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Depending on the provider, it can take between days and weeks for the extra 25% to hit the SIPP. You also need to watch the fees for drawdown/closure/etc.

    My wife has been doing her max of £2880 pa for a wee while,but she's got a few years to go before she can touch it. She'll take it out over several years to avoid tax.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • EdGasket
    EdGasket Posts: 3,503 Forumite
    edited 6 February 2015 at 8:58PM
    Yes I suppose its 20% or 25% depending on which way you look at it. The link below is saying 'Government adds 20%' but then £200 on top of £800 is actually and extra 25% which sounds even better:

    https://www.youinvest.co.uk/sipp/tax-benefits-sipp

    So are you saying she would be free to take out the cash immediately it has been topped up by 25%? Can you do that each year?
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EdGasket wrote: »
    Can you do that each year?

    You can at the moment. As for next year, ask "Krystal" Balls.
    Free the dunston one next time too.
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