mc2fool wrote:If you withdraw it then you are potentially subject to income tax, but you are presenting this as an absolute and it isn't, each person needs to figure their own situation, including considering the bigger picture "further" point.
Okay, I get what you are saying and particularly agree with the last two clauses, but I think you are glossing over reality in the first clause.
If you withdraw it
Well unless we are just doing this for fun, then at some point we, or our beneficiaries, will
potentially subject to income tax
Aside from being able to shield 25% of your pot from income tax, the rest will
be treated as taxable income, certainly actually
paying tax is avoidable if you ensure your annual income always stays within the personal allowance, but otherwise there will be tax to pay.
Cash or gains within your SIPP are not sheltered from tax the tax reckoning is only deferred to the point where you withdraw funds. Hence if you can pay expenses out of the yet to be taxed
funds in your SIPP it is a benefit - or at worst neutral (if you will be keeping withdrawals within the personal allowance).