Most efficient way of taking my DC/SIPP whilst already taking my DB (before the tax man gets it)!

itsmeagain

Albermarle said:

Should I consolidate my Vanguard SIPP & Scottish Widows DC, and if so, how?
Should I take the 25% tax free upfront and then £17k PA or payg tax at circa £23.7k PA?

On the first point, the less sources of taxable income you have, the less issues with HMRC. So from that point of view it might be wise to consolidate just for ease of admin, and do it before making any withdrawals of any kind. 
Pension providers are always keen to encourage customers to transfer other pensions into them. If you look at Vanguards or SW website, I am sure you will find info about transfers. Whichever way you do it, you organise it through the receiving scheme. Normally there is no need to have contact with the ceding scheme, although they might contact you to ask you to sign something.
Not sure what you mean by the second question. You can not take taxable income without taking tax free cash, either before or at the same time. 

Thanks for your reply. I did indeed make a mess of the last part of my 2nd question!
What I actually meant... I could take £40k tax free (that's 25% of my £160k fund), then take a further £17k pa (taxed at 20% and below the 40% tax threshold). Or I could take my 25% tax free as I go, £5.7k tax free & £17k taxed, totalling £22.7k pa (not £23.7k)!.

squirrelpie

itsmeagain said:

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax

You have plenty of time to take out a small amount in order to get a tax code issued and then take the balance of what you want this tax year.

itsmeagain

squirrelpie said:

itsmeagain said:

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax

You have plenty of time to take out a small amount in order to get a tax code issued and then take the balance of what you want this tax year.

I may be over cautious, and I was adding in the potential time to consolidate first.

DRS1

itsmeagain said:

Keep_pedalling said:

Without knowing your wife’s financial situation it is difficult to advise. Is she also retired? What income does she have now? 

Thanks for your reply.

I've since posted financial info for my wife (post #462)

Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts).

itsmeagain

DRS1 said:

itsmeagain said:

Keep_pedalling said:

Without knowing your wife’s financial situation it is difficult to advise. Is she also retired? What income does she have now? 

Thanks for your reply.

I've since posted financial info for my wife (post #462)

Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts).

I'm not sure why my replies are not available for you to look at but I'll paste what I wrote earlier in answering someone else...

My 60 year old wife has just retired from a part time job. She has a teachers assistant DB pension of circa £3k pa, lump sum £6k. There would be an early reduction factor applied for if taken before 65. (Not yet taken).

Over the last 7 years, she's paid 80% of her income into a Vanguard SIPP. It looks like she'll be able to her £90k out tax free over the next 7 years. She also has an £25k ISA. Not used her allowance this year (so we have £40k allowance between us to feed my SIPP/DC into, then a new allowance each in April 26.

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax, until the following year when I could distribute £17k as monthly income for the following years.

Both mine & my wife's DC/SIPP would be switched to ISA's over the same 7 years, some will go to the kids. 

squirrelpie

itsmeagain said:

squirrelpie said:

itsmeagain said:

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax

You have plenty of time to take out a small amount in order to get a tax code issued and then take the balance of what you want this tax year.

I may be over cautious, and I was adding in the potential time to consolidate first.

You can take out a small amount before consolidating, or while consolidating, so I do think you're being overcautious 

itsmeagain said:

DRS1 said:

Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts).

I'm not sure why my replies are not available for you to look at but I'll paste what I wrote earlier in answering someone else...

I think that DRS1 was just letting you know that there's no point in giving a post number on this forum. Just mentioning that you'd already provided the information would be enough, I think.

DRS1

squirrelpie said:

itsmeagain said:

squirrelpie said:

itsmeagain said:

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax

You have plenty of time to take out a small amount in order to get a tax code issued and then take the balance of what you want this tax year.

I may be over cautious, and I was adding in the potential time to consolidate first.

You can take out a small amount before consolidating, or while consolidating, so I do think you're being overcautious 

itsmeagain said:

DRS1 said:

Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts).

I'm not sure why my replies are not available for you to look at but I'll paste what I wrote earlier in answering someone else...

I think that DRS1 was just letting you know that there's no point in giving a post number on this forum. Just mentioning that you'd already provided the information would be enough, I think.

Quite right.

itsmeagain

DRS1 said:

squirrelpie said:

itsmeagain said:

squirrelpie said:

itsmeagain said:

I've not got long left to take out £17k from my DC/SIPP before April this year, so I'll probably trigger emergency tax

You have plenty of time to take out a small amount in order to get a tax code issued and then take the balance of what you want this tax year.

I may be over cautious, and I was adding in the potential time to consolidate first.

You can take out a small amount before consolidating, or while consolidating, so I do think you're being overcautious 

itsmeagain said:

DRS1 said:

Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts).

I'm not sure why my replies are not available for you to look at but I'll paste what I wrote earlier in answering someone else...

I think that DRS1 was just letting you know that there's no point in giving a post number on this forum. Just mentioning that you'd already provided the information would be enough, I think.

Quite right.

Ok - my misunderstanding. When you wrote;

"Sadly on here posts are not numbered.  The number against your name shows the total posts you have made and goes up every time you post (on all your posts)."

I assumed that you couldn't find the post I was referring to.