There's different ways to drawdown. If the form is to tell them how you want to take the money out you might be ok but my friend has always spoken to them to get the correct form then filled it in and sent it back.
I've not done any withdrawals, I use it as a long term savings account.
ive downloaded a form to nominate a bank, but I was hoping I could get some money online rather than via a phone call, last time I must have been at least 1/2 an hour..oh well never mind
This is what I have received from HL in the past. I think they have a legal obligation to provide this illustration.
I have sent a request for this through the message facility in my (OHs) account. You can phone for the paperwork but my voice is a bit high 😂😂.
“Each time you crystallise money in your pension and take a lump sum payment there is a formal procedure to follow.
Before we are able to do this, we must provide you with a personal illustration, which I have sent to you in the post, and which we would ask you to read carefully. It shows the potential effect, on your fund, of your chosen income withdrawals in combination with different assumptions for investment growth and charges over time. It is a projection of what may happen; however what you actually receive might be different depending on the investments you choose, how they perform and how much income you take.
Enclosed with the illustration will be a set of Risk Questions you must answer, which highlight the risks with taking lump sums from your pension. These can be completed and returned by post, or you can call us on 0117 980 9940 to complete them over the telephone. Once completed, we will be happy to send you the necessary application form in order to proceed.”
From memory they have included the application form with the illustration/risk assessment form so you can send it all back together.
Im off to have an investigate, but a couple of questions please about sipps. 2 scenarios I would like to look into if I may.
Scenario 1: If I paid money into one, can I then start to withdraw the money once I am 55, or do I have to wait until I am older? Also, is there tax relief on what I pay in? When I am 55, can you withdraw whatever you want? (I have a work pension, but can not get that until I am 67, so looking at a way of having money to spend between retiring early and getting my work pension).
Scenario 2: If someone is 70+ is there any benefit to them paying money in, and then taking it out the next tax year? They currently pay a small amount of tax on their monthly pension.
SippMar 2, 2021 14:06:45 GMTvia mobileDaveMorton likes this
Post by BusyBee on Mar 2, 2021 14:06:45 GMT
You can get tax relief on contributions up to the age of 75.
Yes 55 until 2028
There are lots of things to take into consideration like earnings limit but broadly, on whatever you contribute to the sipp the government adds another 20% (plus you can claim the other 20% back from hmrc if you're in the higher tax bracket)
On a £1000 pot £800 is contributed by you £200 by the government and at 55 you can draw it out again. 25% is tax free (capital not income) and the rest you withdraw when it's convenient for tax purposes. It really is like a big piggy bank, it's all your money and you choose what and when to take or invest.
Hargreaves Lansdown will explain different options available to you at drawdown etc but they leave the decision making up to you.
As you already contribute to a work place pension work out the maximum you can get tax relief on based on what you earn.
You can use the Sipp for a flutter on the market as well, maybe index link the majority.
Anything to encourage people to just get on the HL site and make a deposit. Like everything else it takes time to find your way around the site but it can be worth the effort.