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Flexible pension drawdown confusion

swill453
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Re: Flexible pension drawdown confusion

#232042

Postby swill453 » June 25th, 2019, 8:09 pm

Alaric wrote:If you had a totally separate SIPP for the £ 2880 contributions, presumably you could take 25% as a tax free cash sum at a time of your choosing. How it works if that SIPP has been consolidated with a earlier one where you have already taken the 25% isn't clear.

In my experience SIPP providers handle this situation ok, letting you have both crystallised and uncrystallised portions at the same time, with the ability to crystallise further bits as you choose.

The mechanics of how this is actually done, and how the two parts are presented to the account holder vary between providers.

Scott.

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Re: Flexible pension drawdown confusion

#232182

Postby OLTB » June 26th, 2019, 3:14 pm

EssDeeAitch wrote:
swill453 wrote:
EssDeeAitch wrote:I have been told that any growth in the SIPP as well as the new contributions will be subject to the 25% tax free draw-down which is good, I was not sure on that. The relevant values will be made available on request. Existing and new contributions are held in the one account, (Fidelity have two accounts for this) which for me makes record keeping easier.

Wow I'm stunned, that (the bold bit) is categorically wrong.

Either you misunderstood, or the person who told you needs retraining.

Do you have it in writing by any chance?

Scott.


In light of your comments, I will get it checked out immediately and come back to you. I will ask in writing this time


Yes, I would get this confirmed as well - when you crystallise the pension, and take tax-free cash, any growth within these funds after this point remains in the crystallised pot. It's only the uncrystallised portion (your ongoing regular contributions + their growth) that any future additional PCLS could be drawn from.

Cheers, OLTB.

EssDeeAitch
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Re: Flexible pension drawdown confusion

#232183

Postby EssDeeAitch » June 26th, 2019, 3:28 pm

OLTB wrote:
EssDeeAitch wrote:
swill453 wrote:Wow I'm stunned, that (the bold bit) is categorically wrong.

Either you misunderstood, or the person who told you needs retraining.

Do you have it in writing by any chance?

Scott.


In light of your comments, I will get it checked out immediately and come back to you. I will ask in writing this time


Yes, I would get this confirmed as well - when you crystallise the pension, and take tax-free cash, any growth within these funds after this point remains in the crystallised pot. It's only the uncrystallised portion (your ongoing regular contributions + their growth) that any future additional PCLS could be drawn from.

Cheers, OLTB.


This sounds more logical to me, I am waiting for the response to my written question and will post it here as soon as.


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