Combining income drawdown & SIPP pension!
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Written on: 23.11.2009 [06:15]
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Inge
Inge
Topic creator
Posts: 4
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What's the best way to combine income drawdown & SIPP pensions? If I have a SIPP can I still choose income drawdown? And how does this work? |
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Written on: 24.11.2009 [05:51]
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Simone
Simone
Posts: 3
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A SIPP pension, or Self Invested Personal Pension, works in much the same way as a regular pension fund, except for the way in which it is invested. It's certainly possible to organise income drawdown if you have a SIPP, providing your pension fund manager is willing to arrange this for you. The only thing to remember with income drawdown is that it can be a risky option. If annuity rates are very poor when you come to retire, then by all means consider it, but otherwise there is no guarantee that you will be able to secure a higher rate in the future, and the income withdrawals will reduce the size of your fund. Remember also that you are swapping the 'security' of a guaranteed annuity for the uncertainty of what the future might hold! |
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