Pre-existing capped drawdown and review requirement.

SallyG

I first did capped drawdown in March 2011 -
I intend to stick within GAD rates - am I still required to do the 5 year/3 year reviews after April 2015?


Also - if someone inherits a pension in drawdown can they carry on contributing to it as a pension fund? If it's inherited as a FAD does that limit any contribution by the inheritor to 10k?

SippTechie

If you stay in capped drawdown then there is a requirement for the reviews to take place.

You can move into flexi-access drawdown without going over the capped drawdown limits just by making an election to your administrator. Once this is done the review limit falls away.

You can't contribute to a pension arrangement that you inherit, but you can theoretically hold the inherited pension arrangement in the same scheme as a pension arrangement that you didn't inherit (i.e. the one you've been building up yourself through your contributions).

The amount of pension you take from the inherited arrangement won't have any impact on the amount you can contribute to your own arrangement. This is regardless of whether they are held in the same scheme, or separately.

jamesd

Will it matter to you if you have your annual contribution limit reduced from £40k to £10k? If not then switching to flexi-access drawdown seems reasonable enough. If you want more than the £10 contribution allowance you'll need to stay in capped drawdown to take out more than the initial 25% tax free lump sum.

SallyG

Thanks both -just musing about what I might be able to pass on the to the kids.
IFA reviews might well be worth it but not £300 for a pointless chat with my provider's representative on earth .................

TH1878

SallyG wrote: »

I first did capped drawdown in March 2011 -
I intend to stick within GAD rates - am I still required to do the 5 year/3 year reviews after April 2015?

Yes, unless you convert it to FAD which you may as well do unless you're one of the lucky 2% of people who pay more than £10,000 pa into a pension.

Also - if someone inherits a pension in drawdown can they carry on contributing to it as a pension fund?

Yet to see this in practice but, unless anyone knows better, I don't believe they can contribute directly into the nominee pension if inherited via FAD. They can, of course, can contribute into their own separate pension.

If it's inherited as a FAD does that limit any contribution by the inheritor to 10k?

No.