SIPPs - Can you continue contributing once you've started to draw down?

gterr

Please excuse very basic question.


I'm 59 and part-time self-employed and just started contributing to a SIPP. At the moment I have some part-time employment income in addition to the s/e so can contribute this too, but from 2016 onwards it will probably be the £3600 gross per year. I want to continue with my self-employment for as long as possible to increase the value of my state pension (was contracted out previously so would benefit from additional years after 2016).


I understand that I can, in theory, contribute to the SIPP up to age 75. However, I'll want to start drawing down earlier than that - probably from 2017 onwards when I'll be aged 61. My state retirement age is 66.


So, my question is: can I continue to contribute £3600 gross to a SIPP at the same time as drawing down from it a bit at a time? Can contributions continue once I've passed state retirement age?


I guess an additional question might be whether continued contributions of £3600 might risk being regarded as recycling?


Thanks for your time.

jamesd

Yes you can contribute to one or more pensions while taking an income from one or more pensions.

£3600 a year is too little to be affected by the lump sum recycling rules, even more so if it follows years of higher contributions while working. The only rule restricting income recycling is the drop in annual allowance from 40k to 10k when taking an income beyond the 25% tax free lump sum from defined contribution and personal pensions.