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UFPLS or Partial Drawdown??
gterr
Posts: 555 Forumite
I'm struggling to understand the difference between UFPLS and Partial Drawdown as it applies to my circumstances.
I am over 55, have a small SIPP, and my state pension age is October 2021. I want to continue to make contributions to my SIPP (£3600 gross per year) until 2018/2019, but I want to start withdrawing money now, in order to benefit from the tax relief on pension contributions whilst making use of some unused personal income tax allowance in the few years in the run-up to taking my state pension. I'm planning to withdraw about £3500 per year from the SIPP, and taking into account my annual contributions of £3600, I should exhaust the SIPP just before my state pension comes into payment.
So, is this achieved by UFPLS, or by Partial Drawdown? Is there any difference? Do both allow me to continue contributions after I've started to make withdrawals? And is there any chance I could get caught up in the pension recycling issue?
Thanks for your time.
I am over 55, have a small SIPP, and my state pension age is October 2021. I want to continue to make contributions to my SIPP (£3600 gross per year) until 2018/2019, but I want to start withdrawing money now, in order to benefit from the tax relief on pension contributions whilst making use of some unused personal income tax allowance in the few years in the run-up to taking my state pension. I'm planning to withdraw about £3500 per year from the SIPP, and taking into account my annual contributions of £3600, I should exhaust the SIPP just before my state pension comes into payment.
So, is this achieved by UFPLS, or by Partial Drawdown? Is there any difference? Do both allow me to continue contributions after I've started to make withdrawals? And is there any chance I could get caught up in the pension recycling issue?
Thanks for your time.
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