Take SIPP pension now or next year

offthehook

I' m sure that these questions have been answered elsewhere but I am just looking for a bit of confirmation or otherwise of the sense of my intended SIPP usage path.
I already have access to a DB pension which would enable me to begin flexible drawdown from my SIPP this tax year if I so wish. However, I understand that it would be more advantageous to utilise capped drawdown initially and then switch to flexible drawdown next tax year, if I ever wished, or had the opportunity to make further pension contributions up to £40k pa ( although this is currently a moot point since I have fixed protection 2014 in place and do not particularly wish to earn a pensionable salary again...but you never know what the future holds ).
I intend to take the maximum tax free lump sum from my SIPP and then an income drawdown of sufficient size to fully utilise my remaining 20% tax band each year. This would amount to <4% pa of the remaining SIPP pot. The pension capital is likely to grow over time, particularly since its usage requirement will diminish considerably as further DB pensions and state pensions kick in over the next 4-7 years. This pot will then effectively become a safety net pot and eventually an inheritance pot ( plus keeping a beady eye on any LTA issues in the run-up to 75 ).
I do not need to crystallise the SIPP pot this year, but certainly intend to begin utilising it in 15-16 : firstly, to take the largest possible tax free lump sum before there is the chance of any potential legislation to limit it; and secondly, to actually use the damn thing when I can most enjoy it ( the inheritance pot bit is nice but more an incidental).
Anything in particular I have missed or should consider further in this complex game of chess ?

Thanks.


OTH

jamesd

I think that's fine and personally I'd start capped drawdown as soon as I possibly could, except I'm not able to.

Given the LTA potential I suggest using the maximum capped drawdown then maybe more once the 10k liit is no longer a factor, since this removes the money from LTA consideration. Maybe use the money for ISA contributions, or VCTs to reduce the income tax bill.