Personal Pension Drawdown Frequency & Accounts

Datchet

Hi, just wondered how other people handle drawdown ? Monthly, quarterly, annually or ad hoc?

Also; if done in larger blocks, do you have a separate bank account that the pension drawdown is paid into alongside ‘other’ income, such as DB income and Savings interest? Ie. Separate from a ‘ day to day’ account?

thank in advance!

Marcon

Datchet said:

Hi, just wondered how other people handle drawdown ? Monthly, quarterly, annually or ad hoc?

Also; if done in larger blocks, do you have a separate bank account that the pension drawdown is paid into alongside ‘other’ income, such as DB income and Savings interest? Ie. Separate from a ‘ day to day’ account?

thank in advance!

You might get more useful answers if you give an indication of what you're hoping to learn/apply to your own pension savings by asking this, otherwise you'll just get random answers which might not assist you at all.

dunstonh

Hi, just wondered how other people handle drawdown ? Monthly, quarterly, annually or ad hoc?

Does it matter what others do?    What is right for you is the important thing.
But for reference, we have clients that do monthly, annually and ad-hoc.  

Also; if done in larger blocks, do you have a separate bank account that the pension drawdown is paid into alongside ‘other’ income, such as DB income and Savings interest? Ie. Separate from a ‘ day to day’ account?

The annual/ad-hoc ones put it in a savings account and draw it over the year.  It would be daft to leave it in a non-interest paying current account.  You may as well do it monthly if you plan to do that.

LHW99

Could depend on your particular platform's costs / fees in any case.

If you need to sell holdings for the withdrawal, doing it annually could be cheaper than selling something every month

redpete

Mine are done using UFPLS withdrawals on an ad-hoc basis, tied in to when gilts mature in my SIPP.  I put these withdrawals into a flexi-ISA.

Mick70

i think i will do this annually and put it into an easy access savings account (but competitive interest) and just withdraw from that each month as if working.  Also IF you happen to need to do a tax return it makes life easier ...IMO 

tacpot12

I have a monthly drawdown payment from my SIPP that is paid from cash in the SIPP. I used to hold about 8 months of payments as cash in the SIPP, but have recently reduced this to three months, as I have more in my Stocks & Shares ISA that I used to have, so can access cash from the SIPP if needed. MY SIPP Portfolio is mainly invested in dividend-producing funds/investment trusts, so the cash in the SIPP is also there to smooth out the inflow of the dividends.