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  1. #1

    AMENDMENT TO DATE - Drawdown Pensions - Increase to 120% p.a.

    My husband and I are now retired and we set up our pension drawdown accounts with Hargreaves Lansdown, which operated from 19 December 2011 and 19 March 2012 respectively. The amount we have been able to drawdown (100%) is disappointingly small compared to our expectations, due to the Government moving the goalposts from 120% to 100% in 2011. Subsequently we have found ourselves looking for alternative means of income due to the restricted cashflow we are suffering.

    We are therefore dismayed to hear that only from 26th March 2013, AND ONLY at the anniversary date of the original GAD evaluation, can we have a revised calculation using the 120% figure. This means my wife will have to wait 9 months and I will have to wait 51 weeks.

    Is there any way this can be appealed against? Can we pay larger fees and move these dates forward by any means? Any ideas or background knowledge which may help would be gratefully received.

  2. #2
    I'm also with HL. I suggest you talk to them and ask what can be done.
    Two possibilities to consider:-
    Request a new GAD just after the March date. If your investments value is than at a peak or have increased, that will increase your income.
    Change your drawdown date/frequency so you get the 120% figure after March.


    As a general note, if you have a SIPP, you should always take the max possible out of it provided you are not in a 40% tax band, You can then put any unrequired money into other savings- ISA or VCT or CGT taxable product. Why? Simply because any money left when you (both) have died is taxable at 55%, and in the meantime you didn't get the benefit of it.

  3. #3
    I just spoke to HL today, and the review of the maximum you can withdraw is nothing to do with the date you actually withdraw from your fund. It's the anniversary of when you first started teh SIPP and is therefore NOT alterable.

    Sorry to deliver bad news1

  4. #4
    I have been busy digging deeper into this for my wife and Iand it does look pretty insoluble.
    you can only move out of a drawdown scheme to go into an annuity, nowhere else, so you
    cannot "bed and breakfast" your drwdown by closing it and reopening it the next as anew one.
    One interesting thing I found out which Ihad never been made aware of is that you can take
    out 100% of your annual entitlement on day 1 if you want to and then have nowt for 364 days.
    Which of course means you can re-invest it and get at least 3% more, conservatably.
    Food for thought..........


 

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