How much income can I take?
Pension freedom rules mean there’s now no maximum or minimum limit to the amount of income you can take. In general, you have three options:
- You can just take your 25% tax-free cash and no income.
- You can take a limited annual income if you’re in capped drawdown. This limit was initially based on the value of your SIPP and your age on the day the cap was calculated.
- You can make a significant withdrawal, although this will probably result in you paying a large amount of tax.
Find out more detail about SIPP withdrawals and accessing your pension.
How do I request an income payment from my SIPP?
To request an income payment from your SIPP, please send us a secure message. After you request a one-off payment, you'll receive it within five working days (you’ll need enough cleared cash in your account to cover the payment).
How will my income be taxed?
Income payments from your SIPP are subject to PAYE Income Tax. If you make a significant withdrawal, this could push you into a higher tax bracket.
The first time you access your SIPP, we'll need to apply to HMRC for a tax code to make sure we're making the correct deductions. If you have a P45, please forward us parts 2 and 3 of the original document. Until we receive HMRC confirmation or your P45, we must legally tax any income paid using an emergency code.
Learn more about how your pension is taxed on withdrawal.