Reply To: Consolidating personal pensions into a SIPP

Participant

Just to add to what Stephen has said with my own interpretation of this….

It’s an eternity portfolio – yes, and when you die what remains in the SIPP can now be left to the beneficiaries of your estate (now that you don’t have to buy an annuity)…. but that does not mean that it has to be…. Personally I don’t think there is anything wrong with drawing down on the capital as well as taking the dividends once you have retired…. If you are 70 and think you have 20 years left to live why not draw down up to 5% of the value of the fund each year plus dividends? But only if you need / want to actually spend the money? This can be reassessed as you go so that you don’t risk putting yourself in a difficult position if you live beyond 90……