Withdrawing Money From A SIPP
You can withdraw the funds from your SIPP, between the ages of 55 and 75 and normally take up to 25 per cent of your fund as a tax-free lump sum. The remainder is then used to provide you with a taxable income.
Where investment are made in fixed assets such as commercial property, the pension fund may need to sell on the property when the market is not at its strongest to provide funds for your income.
Costs of Administration
There may be many transactions moving investments preparing the SIPP for retirement meaning the administrative costs are higher than those of a normal pension fund.
If you die before you begin taking the benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of Inheritance Tax. Other tax charges may apply depending on the circumstances.
Independent SIPP Advice
For more information on withdrawing money from your SIPP please speak to the pension advice team at one our partner firms.
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