SIPP drawdown health concerns

hilsea

I’ve been thinking over the weekend about my sipp and how I manage drawdown. I’m 63 and in relatively good health so I’m quite happy making decisions about my investments. However going forward I’m sure there might come a time when through illness or just old age maintaining a sipp might become problematic . I’m thinking that my generation might be the first generation of mainstream population who find themselves looking after a sizeable portfolio . Previously we would have been forced to put our pension pot towards purchasing an annuity. Or we would have just had the normal defined benefit pension . So my concerns and thoughts turn to what we should do when we reach the time when concentrating on financial issues becomes a problem. Have others considered this issue ? Is there an answer ? After all we tend to live longer and with this method of drawdown have expectations it will see us out through our life until our eventual demise ! 

Lorian

Enduring power of attorney is one tool if there is someone you trust.

squirrelpie

Nowadays it is a financial Lasting Power of Attorney (LPA) rather than an EPA that can be used.

LHW99

Taking an annuity at a late age, or employing an IFA to deal with the pension investments on an ongoing basis are two other possibilities if there is no one capable in your family, or anyone else who you can trust

tacpot12

My retirement portfolio is set-up to need the minimum of management decisions. Income arrives in the form of dividends and is paid out on a monthly basis. The only signficant decisions are whether to increase (or reduce) the amount being withdrawn, and what do do about any Corporate Actions that occur. There is often little choice in respect of Corporate Actions, other than deciding what to buy if an investment fund is wound up. Someone trying to manage the portfolio in my stead could do worse that just divide the proceeds of any wind up between all the existing investments.

Deciding whether I can afford to draw out more will be a decision I will have been making for many years, so I won't find it onerous as it really only needs considering once a years, but someone else trying to manage my affairs might well be daunted by the responsibility of deciding whether I can afford any increase, so my POA allows them to buy an annuity.

  

Marcon

hilsea said:

I’ve been thinking over the weekend about my sipp and how I manage drawdown. I’m 63 and in relatively good health so I’m quite happy making decisions about my investments. However going forward I’m sure there might come a time when through illness or just old age maintaining a sipp might become problematic . I’m thinking that my generation might be the first generation of mainstream population who find themselves looking after a sizeable portfolio . Previously we would have been forced to put our pension pot towards purchasing an annuity. Or we would have just had the normal defined benefit pension . So my concerns and thoughts turn to what we should do when we reach the time when concentrating on financial issues becomes a problem. Have others considered this issue ? Is there an answer ? After all we tend to live longer and with this method of drawdown have expectations it will see us out through our life until our eventual demise ! 

Yes. Use a professional (probably an IFA) to manage it, or buy an annuity.