Putting ISA money into SIPP

Techno

I would be grateful for some advice.
I am planning to 'retire' at 55. My local government pension kicks in at 60, some of my teacher's pension at 65 and the last little bit of TP at 67.
I currently have a SIPP and prior to retirement I intend to transfer a chunk of my S&S ISA into my SIPP to benefit from the tax relief - so far so good.

I then intend to withdraw £15,000 ish (to keep within 25% tax free and personal allowance) per annum from the SIPP and by the time I reach 60, the SIPP will be well gone! My OH intends to do the same but his SIPP pot is bigger and his entire teacher's pension kicks in at 60.

I have heard about pension recycling and what I would like to know is, once I am drawing from my SIPP, can I continue to pay £3k ish per annum from my ISA into it to benefit from the tax relief (i wont be earning so I think that is the maximum?) The intention then would be to draw from the SIPP and from my LG scheme when I am 60 again, keeping within my annual allowance.
Or do I have to open a new SIPP to do this?
Many thanks in advance.

bigadaj

There shouldn't be any problem in progressing this, you would contribute £2880 and this would be grossed up to £3600 with tax relief.

This is all within the rules though it obviously depends on what your provider allows, the same sipp should be able to be split between crystallised and uncrystallised elements, but if not then you would need to open a separate one.

Techno

My SIPP provider is Hargreaves Lansdown so I will give them a ring to see what to do with the contributions once I start drawing from the SIPP. Many thanks bigadaj.

maypole

Could you explain what the terms Crystallised and uncrystallised means please. My tiny pension is due to begin in May and I have the option of taking a lump sum as the monthly pension will be so small. But I just don't understand those terms.:o

atush

crystallised means you have started taking benefits. Uncrystallised means you ahvent (and that is what yours is now).

How much is your pot? You do know that 75% will be taxed at your highest rate? It might be wise to take it in stages if this is the case.

Or is this a DB pension that they dont want to pay as it is so small? Do be aware if this is the case, they may not pay you the full value. I'd start your on thread with the details for others to help with.

Remember, you are likely to live a good old while, unless you have health issues.

maypole

Thank you atush. Mine is a tiny pension, due to working only part time and at the time we were not included in a pension scheme so started making contributions late in the day. So I thought I would take my pension as a lump sum instead of the £285 per year. I'm aware that the lump will be taxed of course, but for my situation I may as well make use of it. The way the letter is set out is absolutely disgraceful in my opinion, there is no explanation of what the terms mean.