RE: I'm a long way off BUT...9 Aug 2025 02:35
Nettles, as you know there are a number of options to consider with a SIPP, apart from taking out an annuity, when you reach 57 that is. I never seriously considered buying an annnuity, as it just seemed too final a step to take. And as you say, who knows how long any of us will be around, to break even or profit from the deal. (Bear in mind also that from Thursday, the BOE reduced interest rates; so anyone considering this option right now will likely have to settle for 025% less via their annuity brokers). A few years ago, I took 25% tax free at the age of 55. The rest automatically went into "Drawdown," and I continue to buy and sell stocks there as normal; not least Rolls Royce, which made me back my 25%... Shortly before that, I opened an ISA account and started depositing my maximum allowance every tax year - and it's where I hold the bulk of my RR shares now. But did you know that in addition to an existing "Drawdown" account, you can in addition, open an entirely new and separate SIPP - and continue to deposit up to £10,000 per annum into it, and still receive your (commensurate) Tax Relief?