Has anyone transferred pension into SIPP then taken their lump sum out? Just wondering how it works.
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Yes I have done that. I transferred a standard life into an Bell sipp. It took a few months. It took a lot longer to persuade my pension provider to do it though. It was a few years ago so might be easier now. Once it is in your sipp, you then have to put your sipp pension into drawdown status. Again talks and forms and waiting. 25% should then turn up in your bank account. This will be tax free. You can then draw down as you want. It will start being taxed on emergency code until taxman sorts out proper code.
Good luck.
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Hi
Can you trade the pot that is yet to draw down still? Or is it cash in the pot or something? If FT were to offer a service where you could take out your 25% on retirement then trade and withdraw even if taxed at 40% until tax code is confirmed I would put an awful lot more into my SIPP.
I have kinda just been hoping they would offer this in the future. I have never found a clear guide on what options there are for SIPP draw down options, certainly not that I think will apply to FT.
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Currently FT don’t offer ‘draw down’ services … if you get to the magic age… currently …you’d need to transfer your SIPP from FT to another provider to get drawdown.
Not that there is anything major wrong with the FT SIPP… but for the fee… I’d be wanting draw down options and to be able to have REITS.
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I believe that when getting close to retirement age it’s advantageous to max out your SIPP contributions for the tax relief. If you can adhere to the 4% rule in drawdown… Then it’s little to no tax paid.
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I know they don’t offer it yet but that is what I was praying on, it only being yet. 
The FT team have mentioned before how poor the pension options were in the UK so I was showing faith that they will come up with a good solution.
About the 4% is that a rule? Not sure how this would work if the portfolio grows at say 7% and you withdraw 4%. I guess it just gets taxed at that bit.
My interest in an ideal world would be that I always own my shares and withdraw x amount and whatever is left I leave in a will. Not sure on how this is even possible TBH. If it was I would go crazy adding more and more money into it. I just hate the idea of saving loads for a pension and then dying so the pension company making a killing in profit! 
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Hopefully it’ll be a long time coming but anything in your SIPP can be passed on free of inheritance tax.
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Is that not only if I have not drawn down on it? As I said I haven’t really found a clear description on the options anywhere I trust so far. I’m not bothered about taxes etc as I happily pay what I should before or after death but seen someone get a payment plan and die so a certain legacy company walked away with thousands in profit.
If FT offered something I could take the 25% and carry on as normal even if i can’t add more then withdraw and pay tax then leave in a will the remainder I would be ecstatic.
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Be a shame if you got run over by an ARVL bus or van before retiring…
Generally SIPPS allow you to nominate beneficiaries… My full name is Celia Leigh
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That would be just my luck, die and then ARVL go bust so I finish the year bottom of the Bagger league 
Anyone know a decent link for a guide on the draw down rule/laws? Google is not being my friend on this one
At the moment I have a couple pensions, one for me and one which I treat as a trust fund for my godsons which is the SIPP. If it was clear I would probably move all into SIPP, here hoping FT bring in some policies soon so we can plan for the future!
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I assume that they just sell off your investments at market value and transfer the money. Hopefully someone with more knowledge will chirp in regarding inheritance tax…
But your hard work/ investments wouldn’t just goto AJ BELL / FT / etc … 
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No. You’re thinking of an annuity where you’ve used your pension money to buy a guaranteed income.
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That’s great I thought it was along these lines but not sure as FT don’t offer the draw down option and thought I may then have to get an annuity.
@Optimisery yes if I die they would sell and give the money to my named people, that’s cool and happy with that but would prefer they got the shares but don’t see that changing. Just hoping they allow for draw downs or at least say they will add by say 2025 so I feel confident it will be done in maybe 20 years
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@Big-g in 20 years when $ARVL is $1000 per share we won’t need to worry about such things
Then I woke up…
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I assume most sipps you can still trade.
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With an Annuity you are basically wagering that you’ll outlive the actuarial life expectancy tables. It’s an interesting conundrum because on one hand the insurance companies have access to so much data about your cohort however you can control elements with your lifestyle.
It’s like you’re playing drafts while they’re playing 3D chess and you don’t stand much chance of beating them, live as healthily as you want - they know how likely you are to get cancer / dementia.
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Bearing in mind my geographical location for many years I’ll think I’ll be sticking with the SIPP.
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