Please help me think through how to combine drawdown, mortgage, SIPP and savings!!

kidmugsy

_pete_ wrote: »

Also, whether I should put some of my savings into my SIPP as cash - my understanding that this in effect generates an immediate 20% return? Is that right?

Right but misleading. It fails to remind you that when you come to take the money out, 75% of it will be exposed to income tax at whatever rate pertains at the time.

But if, for instance, you were to die before age 75 then the money in your pot would go tax-free to whoever you nominated. Then the boost would indeed be lovely. Indeed, lovely or not, it's a 25% boost of the net amount you add.

atush

Also if you are drawing this money before the DB pension and SP then you can take up to your PA w/o any tax to pay.