Retirement Benefits

No, you can take your pension fund in stages, rather than securing your retirement income all at once. This is known as ‘phased retirement’.
As from 6th April 2015, pensions legislation has permitted Flexi-Access Drawdown. All new drawdown arrangements set up after this date are Flexi-Access Drawdown funds. The new drawdown is similar to the old Flexible Drawdown however there is no cap on the income limit. A member can withdraw as much or as little as required without restriction, however, taxation advice and financial advice is strongly recommended before starting to take any benefits. UK Income tax is applicable to income wherever you reside in the world. There are double taxation agreements and a variety of options available due to the flexibility within the product. If you require any technical support on this, please contact our technical team.
You may use your SIPP funds to purchase an annuity at any time after the minimum retirement age of 55.
Capped Drawdown is a form of income withdrawal where the member’s pension is paid from the monies invested within the pension scheme and subject to certain limits which are regularly reviewed. As of 6th April 2015, it was no longer possible to access capped drawdown and, clients with fully uncrystallised monies in their pension can only opt for Flexi-Access drawdown (FAD) or Uncrystallised Funds Pension Lump Sum (UFPLS). If a member prior to 6th April 2015 has crystallised their arrangement and is currently in Capped Drawdown, the member can continue to be in Capped Drawdown or convert to Flexi-Access drawdown. Please note that when you access Flexi-Access Drawdown you will trigger the (MPAA) money purchase annual allowance.
The legislation limits how much lump sum may count as a tax-free pension commencement lump sum. The limit is 25% of the total fund value at retirement where the fund value is calculated on the basis that the member is entitled to the standard lifetime allowance.
Yes, pension commencement lump sum can be accessed from the normal minimum retirement age of 55 from benefits that are uncrystallised.
SIPP does not enforce a maximum retirement age, however, age 75 in a registered pension scheme such as the International Expat SIPP, IVCM Heritage SIPP, and Brooklands SIPP does have trigger points. As always, we would recommend your specific financial goals are aligned by your financial adviser.
The minimum pension age currently in SIPP is 55 unless you are in ill health or serious ill health as described above.
You can take a tax-free cash lump sum and a taxable income, from your SIPP. The maximum tax-free cash lump sum you can take is 25% of the accumulated value of your pension pot. This can be at any time after your 55th birthday to be classified as an authorised payment. You do not need to retire from your occupation in order to take your pension benefits. You may receive your pension benefits in addition to your salary. Individuals who are in ill-health or serious ill-health may take benefits before normal minimum pension age as authorised payments if certain conditions are satisfied as described above.
It may be possible to take benefits earlier than the minimum retirement age (i.e. 55) if you are in serious ill-health. Pension benefits may be fully commuted as a lump sum and taken on the grounds of serious ill-health at any age provided evidence is received from a registered medical practitioner stating that the life expectancy of the member is less than a year. Only benefits that have not been designated to provide pension benefits may be commuted on these grounds. If you have any questions or require any further information, please arrange for your financial adviser to contact us.