Hi
I made the decision in 2013 to consolidate all my (small ish) pension funds into a self-managed SIPP and to invest the sums into one HYP-based fund based on SB’s recommendations. I invested a total of £163k. I opted for flexible drawdown to allow me take what and when I wanted from it. 5 years later I have withdrawn my tax free allowance of £10-11k. The idea was that the dividends of c4% would be my income and let the capital fluctuate. The capital value is now £212k making the overall return of about 62% (50k capital and 50k income over £160k over 5 years) or about 12%pa. Better than any annuity. I also enjoy the idea of keepig in touch wih companies news and managing a portfolio. I am also allowed to add £2880pa which is soon after topped up by HMG by £620 tax relief ‘money for nothing’ that I could choose to immediately withdraw. To me, this is not counter-intuitive but good business. Of course, it all depends on your circumstances and advice should be taken, but this has really worked for me.
