Disadvantages in moving Pension to SIPP

Kerry_o'keefe

No longer wish to waste peoples time

zagfles

The transfer value isn't that good - have a look at index linked annuity rates, they are generally well under 3% at 60, without spouse pension, without guarantees. Your pension will probably have a guaranteed period (eg paid for 5 years if you die before then) and spouse's pension, plus usually index linked up to a limit.

You could transfer it but you'd likely need to take advice - which could cost a bit and the advice could be not to do it.

mgdavid

Kerry_o'keefe wrote: »

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My budget for retirement is £30k per annum post tax
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unless I've missed something I cannot see how you will reach or maintain this figure for more than just a few years of retirement.
Did you mean pre-tax?

drumtochty

I think you are seeing pound signs re cashing in the other final salary pension do not waste the forums time unless you have paid for and got an IFA's recomendation to cash it in.

I have run a spread sheet and it suggests to me that around your state pension age you will strip out your sipp using it to take tax free money until your state pension starts to appear. Not just the tax free lump sum.

Then your good ladies lump sum and your savings will probably last to around 100 years of age.

Unless I have got my spreadsheet wrong which I may have done but if I was you from experiance. I would be looking for some part time work. Unless you are a boring old fart it is so easy to spend more than £30k a year after tax in retirement.

chiefie

Are you going to empty your SIPP up to state pension age ? You will then have £28k per year for life approx if you can get full state pension ? Or have I missed something ?

Kerry_o'keefe

Sorry for wasting time