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Thread: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or must th

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    Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or must th


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    It's based on the policy years, which will normally run from the date that the first crystallisation event occurs - i.e. when benefits are first taken.

    How he takes the income in each policy year is entirely up to him - therefore if, for example, the policy year runs concurrently with the tax year, he could take the max income for the year as a lump sum now, and then take the same again after 6th April, or a lump sum on 5th April and then again on 6th April, or as a combination of regular payments with the balance taken as a lump sum.


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    thanks for the quick reply.

    so if the policy is taken into income draw down this month, the maximum income could be taken for example 20 Dec 2012 and then again on or after 20 Dec 2013?


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    Correct, or any other permutation within the policy year.


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    Any sign of health issues that might affect life expectancy? A Scheme Pension can pay out more than Capped Drawdown but the costs involved in having an actuary producing a custom plan mean it's unlikely to be cost-effective for a pension pot below £50,000, more likely over £100,000 and higher.

    Is income anywhere near to £20,000, when Flexible Drawdown might allow taking as much as the relative likes? Sometimes buying a low value level annuity or deferring the state pensions for a year or two can be enough to get over £20,000 and allow this. You can defer once even if you've started taking the state pensions.


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    It's based on the policy years, which will normally run from the date that the first crystallisation event occurs
    Oooo, lovely, Pension Input Periods to worry about on the way in and Policy Years on the way out. Bliss!


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    Re: Income Draw down question This question is for a 71-year old relative currently with a SIPP. Regarding income draw down - can be the maximum income be taken now and then again in say April 2013 or mus

    It gets to be even more fun if you use staged drawdown and have multiple arrangements in the same scheme, possibly each with its own year and GAD calculation...


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