Should I start to empty my SIPP

ali_bear

I have a suggestion for you, assuming you are now retired and plan to not work anymore (at least not in a significant way for tax purposes).

You already have a large amount invested in various places (ISA, GIA) as well as your SIPP. So convert all of the SIPP now into a guaranteed regular income for life, rising with RPI and with sufficient benefit for your wife if you should pass away before her. I'm talking about a lifetime annuity. Annuity rates are high at the moment, so are S&S values, so it is a good time to convert. The annuity income will not be huge, but it is guaranteed for life and it will cover your basic living costs regardless of anything else in the world.

This will land you with £125k TFC which you'll have to handle somehow. And you will need to bridge the 4-year gap to state pension age.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82102651#Comment_82102651

Thanks. I'll have a look at that.

Initial thoughts are that it would take away the excitement of having a fairly high risk portfolio and also remove the admin, which I do enjoy. But I will certainly give it a look.

AlanP_2

https://forums.moneysavingexpert.com/discussion/comment/82102660#Comment_82102660

It does take those away, that's the point really.

You like the excitement and the admin but it doesn't sound like your other half would so this option would make her life a bit easier if anything happens to you and you'd still have your other assets to find some excitement with.

hoofy

I have been looking into it and considering it all morning. I got the figures from google and was presented with all the different options, so now I have a better understanding of how they work.

QrizB

Initial thoughts are that it would take away the excitement of having a fairly high risk portfolio and also remove the admin, which I do enjoy. But I will certainly give it a look.

You could annuitise 80-90% of it, then, but keep the rest for your entertainment. It's not an all-or-nothing decision!

kempiejon

A few years ago when I commented that my more exotics single share picks were mixed in with more sensible index etfs and investment trusts, following a suggestion from a fellow investor I chose to have a play account just for my more exotic choices. My SIPP and main ISA I keep pedestrian indexy, blue chips, gilts and whatnot but I have an account just for my exotic choices. Scratches that itch and keeps me honest with the main holdings.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82103101#Comment_82103101

I stick with boring funds. If I want some money based excitement, I go to Sandown Park ( or similar ) !

RogerPensionGuy

I like this thread, especially the 1st and last post on page one, plus mitigation of tax etc.

I'm also currently trying to fumble my way through hard~flow income for life long security and try leaving an older Mrs Roger in a secure way if I get the earlier train than her.

I'm currently a fan of annuities because my DC SIPP enjoyed essentially 17 years of a bull market rise, my age circa 65 and current annuity rates. I've just purchased one and may do another and final annuity soon, in a while, leave alone or start a low % drawdown system in that DC SIPP.

I like many have a big miss~match in wife/husbands/partners pensions and wealth. I have long been toying with buying a PLA (purchased life annuity) and as I'm now a 40% tax payer luckily, buying a PLA for Mrs Roger feels more comfortable especially as annuity rates are pretty high currently.

Question to the OP, are you much interested in buying an annuity or a PLA?

Cheers Roger.

aldershot

I'm glad that this thread has started looking at annuities and has a few mentions of bonds. Whlst interest rates were near zero, equities were the only game in town. That is clearly no longer the case. I view global equities, especially US ones and especially tech ones, with a face that Munch would be proud of. Last month, many tech stocks (the mag 7 make up around 22% of MSCI world) we moving (up or down)10-15% on the day. Microsoft market cap moved by nearly half a trillion dollars in one day. This, to me at least, is not a rational or stable market. As I move through my sixties, i'm increasingly moving into gilts. 5% (current 10 year gilt yield) compounded for 10 years is a 63% return. The MSCI, or any other index might return something like that, or more, or less, but I like the guarantee and sleep better.

And yes, inflation yadda yadda…..

hoofy

Question to the OP, are you much interested in buying an annuity or a PLA?

I'm still considering it, but one thing I haven't mentioned which does slightly sway me against, is that my wife is 3 years older than me and suffers from a number of chronic ailments. I'm as fit as a fiddle, as far as I know.