I’ve created a SIPP pension. Will I be able to withdraw it as a lump sum when I retire?
Hi Stephen, Well you can but it is not advisable to do so, as you will be stung for taxes…also depends on the fund value…I would recommend taking some professional advice…or doing loads of reading from decent providers off the internet.
Basically, when you reach age 55 (57 from 2028), you’re free to start withdrawing money from your SIPP, even if you’re still working** . You can usually take up to 25% of your pot tax free. The rest of your withdrawals will be taxed as your income up to your personal tax allowance…I am not a professional adviser, so please do your own research.
Hi, I already have a workplace pension and was only testing savings pots if I build my SIPP to, £20000, what would my options be?
I’m a newbie when I comes to understanding pensions.
If you want a tax free lump sum around retirement age to supplement the 25% you’re allowed to take tax free from your workplace pension, you should look into an investment LISA (Lifetime ISA). At the age of 60, you’ll be able to withdraw it all (100%) tax free.
Max contributions are £4000 per tax year into a LISA and the government bonus per tax year is 25% (so £1000 bonus per tax year if you max it out). You can contribute up to age of 50.