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SIPP reduced drawdown for a couple of years
Posted: June 29th, 2023, 7:44 pm
by hind
If I was to reduce my SIPP drawdown amount for a couple of years, as have other income, would there be any obvious negatives.
Imagine this just means all things being equal I will get a higher possible drawerdown figure in future years
Re: SIPP reduced drawdown for a couple of years
Posted: June 29th, 2023, 8:02 pm
by BullDog
Even if I didn't need the money, I'd make sure I was utilising all my personal tax allowance. If only to move money from SIPP to ISA in order to reduce future tax on drawdown.
Re: SIPP reduced drawdown for a couple of years
Posted: June 29th, 2023, 8:54 pm
by Howard
I have done this and there are no negatives from a SIPP viewpoint. There may be income tax implications to consider.
It's worth remembering that a SIPP is a brilliant vehicle for passing to the next generation totally free of IHT as it is outside your estate. Assuming a future government doesn't change the legislation
.
So increasing its value by reducing drawdown might be worthwhile for estate planning purposes.
regards
Howard
Re: SIPP reduced drawdown for a couple of years
Posted: June 30th, 2023, 6:15 pm
by hind
Thank you for the replies
Bulldog Im using up my allowances still
Howard, yes IHT was part of the reason. Also thought could do a PET as have bigger pension in later life
Re: SIPP reduced drawdown for a couple of years
Posted: June 30th, 2023, 11:54 pm
by xxd09
I certainly oscillated between using my SIPPs and ISAs during drawdown over the last 20 years
I did miss using the balance of my personal allowance once or twice -till pointed out on this board!
Not all that much now with full State Pension in play
Want to keep ISAs below IHT bands and balance of Pension can be left to heirs
Very flexible system
xxd09
Re: SIPP reduced drawdown for a couple of years
Posted: July 1st, 2023, 8:21 am
by Urbandreamer
BullDog wrote:Even if I didn't need the money, I'd make sure I was utilising all my personal tax allowance. If only to move money from SIPP to ISA in order to reduce future tax on drawdown.
Interesting view. I'm taking a different view and spending my ISA to reduce IHT exposure. Also by doing so and putting off drawing upon my SIPP I maintain my SIPP contribution allowance, should I decide to return to employment (though that is unlikely).
Re: SIPP reduced drawdown for a couple of years
Posted: July 1st, 2023, 8:29 am
by BullDog
Urbandreamer wrote:BullDog wrote:Even if I didn't need the money, I'd make sure I was utilising all my personal tax allowance. If only to move money from SIPP to ISA in order to reduce future tax on drawdown.
Interesting view. I'm taking a different view and spending my ISA to reduce IHT exposure. Also by doing so and putting off drawing upon my SIPP I maintain my SIPP contribution allowance, should I decide to return to employment (though that is unlikely).
Exactly, it's all about personal priorities.