Newbie question - Tax efficient Drawdown

Hoenir

Albermarle said:

HibbyAndrew said:

molerat said:

So you would recommend still continuing to ontribute into the pension? I had considered that but didnt really see the advantage ? Is it purely the uplift provided by HMRC?

The advantage is that you can pay in £2880 this year, either from savings or if you think the annual £16760 is too much then from that, and draw £3600 next year as part of your normal annual withdrawal completely tax free.  What is there not to like about 25% uplift tax free !

Hi Molerat, thanks - yes - I appreciated the uplift, but thought that the tax when taking it out would effectively minimise the uplift and therefore wouldnt make it worthwhile?

However if you have a pension already and are withdrawing from it already, then there is no extra work for the £180.

Which covers the annual SIPP administration fees.