Pension Tax Free Cash after age 75

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SeniorSam Posts: 1,670 Forumite

30 August 2018 at 8:55AM edited 30 August 2018 at 11:56AM in Cutting tax

A married couple without the possible liability to inheritance tax and both over age 75 wish to improve their tax position. The husband has uncrystalised Sipp and a Drawdown account, having taken part of his Sipp into Drawdown.

At his age, on his death the beneficiaries of the pension will be taxed at their nominal income tax rate by drawing income or encashing the Sipp pots.

Do you agree that they would be better off taking all his tax free cash now and investing into ISA's for ongoing tax free growth, rather than letting his Sipp pots build up that will eventually be taxed when he dies?

Sam

I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.

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Pension Tax Free Cash after age 75

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