chapter 8

Taking benefits from a SIPP

Overview

Unless you are in ill health or serious ill health, you cannot normally commence benefits from a SIPP until you have reached the age of 55.

When commencing benefits, you can normally take part of your benefits as a tax-free lump sum. The balance must normally be taken as a pension income, payable for the rest of your life.

If you have a SIPP, you can choose the way in which your pension income is provided from the following:

  • A capped drawdown pension income.
  • A lifetime annuity from an insurance company.
  • A flexible drawdown income.

All payments are subject to PAYE income tax.

Normal minimum pension age

The normal minimum pension age is 55. Benefits can be taken from this age, or any time afterwards, ...

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