Pensions, Annuities & Retirement Planning | Forum profile

Quote: Originally Posted by rafikiphoto Yes. I am sure you are right. I was just wondering if I might be OVERestimating the risks and didn'w want to dismiss drawdown out of hand because of it. How much of your income will this pension be providing as a percentage of your overall income?

Quote: Originally Posted by Gatser But in practical terms I still wonder how that works because at a point in time the SIPP bank account may have (say) £3400 in it ( its paying out £1250/month drawdown), further contributions could go in for (say) £1600. How will contributions money going into the account, be separated from monies allocated for drawdown payout? (Sorry if I am getting too technical... its my curiousity!) Ask the SIPP...

Probably not, unless you're terminally ill.

That means you are statistically less likely to win going forwards* *here we go again

BongleSnurdle, You don't need to buy a book, you have a search engine in front of you, and a hundred views on the best way forward here on MSE. Clearing your debts and putting away what you can for now would be a good start point. Best of fortune. Pensions are not the only way to ensure adequate funds in retirement anyway.

If your employer contributes to a plan, it doesn't matter what type of scheme it is - it's free money (although you may have to contribute a little bit yourself)!

I suppose the advantage I have over the other poster is that I am still within my 30-day cooling off period, so have been able to cancel at minimal cost to me. I am a bit of an obsessive small-print reader, so did spot the anomalies, and now realise that the advice given was entirely inappropriate given my circumstances. The problem will be proving that I wasn't made aware of the £600 fee, as ultimately it would probably relate to a...

Quote: With regard to the original question, based on your contribution you would have a much better pension staying with the final salary scheme rather than joining a money purchase scheme - if I've understood your question correctly, I certainly wouldn't give it up for a one-off payment of £11K. But bear in mind that the Scheme may close at some point in any case - unless it's public/quasi public sector. This may be more...

"There is no Capital Gains Tax (CGT) or Income Tax on the pension investments within a SIPP except dividend tax credit of 10% which cannot be reclaimed and some withholding taxes which operate in different countries."

is the lumpsum reduction likely to be 5% p.a as in the actual weekly pension and is the loss of the yearly increase taken into consideration.