I took my 25% tax free cash from my SIPP last year and am very pleased I did. If Labour stay in government they will most likely be coming for it sooner or later. I voted Labour but it could be a very expensive vote.
It's one of the few times I wish I was a couple of years older, still 2 years 3 months and 15 days until I can get my tax free lump sum out!!
So I have an old final salary pension as well as my current work pension. I was in it for 13 years, I’m 57 so could take this but was hanging on until I’m 60. Would it be a good idea to take this now & guarantee my 25% lump sum , what with all the uncertainties ?!
You could do. What is the normal retirement age for the scheme ? I'd expect there to be penalties/actuarial reductions if you took it early. If the retirement age was 60 then you might only lose 10-12% of the lump sum. If it was 65 it might not be worth it.
Always good to get an annual statement of its current value & options to take it early.
A simple point, but a very crucial one. Whilst I could retire at 55 and take my pension, my old DB scheme had a built in retirement age of 60. They would have reduced my annual pension by 20% (4% for every year to 60) if I had stayed in the scheme and it was another key reason for me opting to move the full pension to a SIPP and take a flexible drawdown.
Yes, I moved the full pension to a SIPP and then withdrew the full 25% tax free lump sum when Rachel Reeves started hinting about a cash grab.
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