Tuesday, January 19, 2010

Retirement pension Would you be brave enough to opt for the income drawn known as SIPPS?

Resolved Question

Retirement pension Would you be brave enough to opt for the income drawn known as SIPPS?

given the state of the stock market or would you play safe and buy an annuity with your pension fund? Applies to UK only.

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Great answer great wolf

16 hours ago

Sorry Greywolf....Ooops!

16 hours ago

Best Answer - Chosen by Asker

SIPPS are only suitable if you are not dependent on them - you need to have enough income from elsewhere to pay the bills without any drawdown while the stock market is down. And there is a minimum worthwhile investment of between £150,000 and £200,000. You need to hold a SIPP for a minimum of 5 years to get anything out of it. Changing your mind would be expensive.

If you are deciding about your whole pension pot, a SIPP is probably unsuitable.

Watch out for pressure selling of SIPPs by your financial advisor. I know someone who got screwed that way.

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