SIPP Retirement Options
Retirement Options
SIPPs normally let you take benefits from the age of 50 (55 from 6th April 2010) and you don't even have to stop working. You have a number of options as to how and when you take your benefits, outlined below:
Phased Benefits
SIPPs let you take your benefits in stages. Any funds you delay taking benefits from remain fully invested under your control in your SIPP. Your SIPP can be passed on to your beneficiaries should you die before taking all the benefits (subject to certain tax rules).
Tax free cash lump sum
You can normally take 25% of the value of your SIPP as a tax free cash sum. The remaining investments can be used to provide you with an income via annuity purchase and or income drawdown. See our explanation below.
Annuity Purchase
An annuity purchase is a life assurance contract, bought from any provider you choose, using your SIPP fund. The annuity provider then guarantees to pay you a regular income for the rest of your life. Annuities provide options such as whether to sacrifice some income so that your spouse will continue to receive an income should you die first.
SIPP Benefits
- Your own personal retirement strategy.
- An ideal shelter for bonuses and lump sums.
- Make your admin easier by moving your other pensions into one SIPP.
- Full range of investment options; UK & international equities, bonds & gilts, investment trusts, unit trusts, OEICs, REITS and Exchange Traded Funds.
- Easy access to your plan online or by phone.
- No initial set up fee - so you save £80!
- Access to normal trading facilities and extensive company research.
- Multi currency facility, hold cash in 4 major global currencies (GBP, USD, CAD & EURO).
Income Drawdown (Unsecured Pension - USP)
This allows you to receive an income. It works by letting you draw a variable amount of income from your drawdown fund each year, within minimum and maximum limits defined by the HM Revenue & Customs (HMRC). Furthermore you retain control over where your income drawdown fund is invested. You should bear in mind that the amount of income available via drawdown cannot be guaranteed.
Income Drawdown from age 75 (Alternatively Secured Pension - ASP)
At age 75 your pension fund can be used to provide a new form of income drawdown. Income drawdown alternatives are shown below.
| Income Drawdown | Pre age 75 Unsecured Pension (USP) | Age 75 Plus Alternatively Secured Pension (ASP) |
|---|---|---|
| Maximum annual income as % of equivalent annuity | 120% | 70% |
| Reviewed every | 5 Years | 1 Year |
| Tax-free lump sum | Yes | No |
The information provided here is for your reference only. You should seek independant financial advice if you need to.
SIPP - How to open an account and find out more
For more information |
 |
Call our Investor Centre on
|
Tell us a convenient time to call you
|
To help with your application we have also produced a SIPP application help guide which is available to download. |
 |
||
To apply now, get a |
 |
Download the SIPP Application Form
|
Request an information pack by post
|
Before making an application, please make sure you have read the SIPP Terms of Service. |
|||
