FA advice

dunstonh

I have spoken to my advisor who suggests I live off savings for a while until they are reduced therefore not accessing my pension yet.

We dont have all the facts but a non-earner should be drawing from their pension so the 75% element matches the personal allowance.  If they dont need the money, then that draw should be filtered to an ISA.   The ISA can match the pension investments and the same costs. Its just tax efficiency and not wasting your personal allowance.

There are a small number of caveats you wouldnt do that.   

So, you should at least be asking the adviser why they are not recommending an action if you think it is appropriate for you.   
 

FA advice

The general rule of thumb is to use an IFA or DIY.   Not to use an FA.   FAs are typically sales reps of the provider they represent.  They are often indirectly targeted to increase assets under management.   So, talking about drawing money out doesn't make them unbiased in your situation.

Albermarle

I want to start drawing down my DC pension, just taking the remaining £3570 tax free allowance until the end of the financial year (monthly so £595 per month, then drawing down £12570 pa after that but £1047 monthly.

OP - Do you realise that you can not just take taxable income, without taking some of the tax free cash first/at the same time?
I do not think the tax free cash has been mentioned so far in the thread .

QrizB

ali_bear said:

You could take a small withdrawal on your DC pension to use up this year's allowance. Open a SIPP on Hargreaves Lansdown and do a partial transfer in, say 8k. Then ask HL to take it all in one go under the small pots rule.

Rather than a transfer in, since OP has earned £9k this year they could deposit £7200 and get £1800 RAS tax relief, then proceed with the small pot withdrawal as described.

ChillyCharly

Thanks for all your comments I've decided I'm going to tell my advisor I want my tax free allowance up to the £12570 this tax year. Then I'll decide again in April. Thanks again.

Albermarle

ChillyCharly said:

Thanks for all your comments I've decided I'm going to tell my advisor I want my tax free allowance up to the £12570 this tax year. Then I'll decide again in April. Thanks again.

You will have to take some tax free cash at the same time, unless you have already taken it.

ChillyCharly

Albermarle said:

ChillyCharly said:

Thanks for all your comments I've decided I'm going to tell my advisor I want my tax free allowance up to the £12570 this tax year. Then I'll decide again in April. Thanks again.

You will have to take some tax free cash at the same time, unless you have already taken it.

I have previously taken a small lump sum, so I have a crystallised pot I can drawdown from, but thank you.