Taxing your knowledge
There are also tax considerations with drawdown. For example, should phased drawdown be applied to utilise the tax-free lump sum in providing income, while also sheltering as much of the fund as possible out of the potential 55 per cent death benefit tax charge environment? Flexible drawdown needs to be considered too.
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The at- and in-retirement market now provides many options to better fit individuals’ needs and changing requirements through a much extended period of retirement. The flexibility that many Sipp clients value presents a challenge and opportunity for those involved in the Sipp market to deliver.
Robert Graves is head of pensions technical services at Rowanmoor Group
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