Sipp flexi access drawdown and LSA

yocky

https://forums.moneysavingexpert.com/discussion/comment/81961075#Comment_81961075

This is excellent advice about the linkers, so excellent that I already took it with the funds I hold outside of tax wrappers. If I hadn't done that already it would be very tempting. It's still a little tempting tbh because for someone who is fortunate enough not to need to lean on future investment returns to fill in the gaps they just seem like the complete package but it seems unwise to lob all the eggs in one basket.

yocky

I think the current risk of a policy shift around TFLS making me regret not taking it while I could is low enough that I'm going to ignore it for now. Regime change could alter that.

I notice a couple of you mention UFPLS specifically. Any reason for that over Flexi Access?

DRS1

I am not sure UFPLS is better than FAD. It can be simpler. It can save you from having a drawdown account (which in some places can lead to extra fees). But it is less flexible - for each UFPLS payment you take 25% is tax free and 75% is taxable. So some people will set up an UFPLS payment in March each year to utilise what is left of their personal allowance for the tax year (or maybe what is left of their basic rate band).

But if you just want to take the TFLS and not the taxable income then FAD is what you want.

Just to say not all pensions are set up to do all methods of drawdown and you should probably check what your pension provider can do. Sometimes they need to transfer you to a more modern scheme to give you more bells and whistles.