Skip to main content
HomeChoose an account › Overview

TD SIPP – Retirement Options

The biggest changes to pensions are taking place which means you now have greater access to your pension savings from the age of 55. Whilst pensions are still all about investing to provide for an income in retirement, having greater flexibility in how benefits can be taken recognises we all have different needs and circumstances.

Total freedom on how you draw an income from your pension (no limits)

More choice on taking lump sums from your pension

Improvements to tax charges on death benefits

Pay additional contributions to your pension (up to £10,000) even if you are withdrawing benefits

Access to free guidance from Pension Wise

Find out more

Greater Pension Flexibility

For a quick and easy to read guide to the changes being made to Pensions

Download Guide

Understanding Your Retirement Choices

A detailed guide to the UK pension changes from 6th April 2015.

Download Guide

If you draw a regular income above these limits (or after April, flexi access drawdown) using flexible drawdown your fund will reduce more quickly. Once you’ve taken funds out of your pension those funds will no longer benefit from exemptions to capital gains, income and inheritance tax.

What you need to know

Introducing Pension Wise

Everyone with a Defined Contribution pension scheme is entitled to access free, impartial guidance on their pension options, including a face-to-face or telephone appointment, provided by Pension Wise, a guidance service backed by government.

Find out more about Pension Wise

TD talks to Michelle Cracknell CEO Pension Advisory Service

Play video

Receiving Advice on Your Retirement Options

Prior to making any decision about your retirement options we also recommend that you seek the advice of a suitably qualified financial adviser. Please note that AJ Bell Management and SIPPdeal Trustees Limited are not able to offer advice. TD Direct Investing is not able to offer advice on your pension

We can make payment for this advice on your behalf from within your TD SIPP. To do this please download and complete our Financial Adviser Charging Form

Helpful case studies

 

John wants to access a lump sum to pay off his mortgage



Read John's case study

Partap wants to supplement his rental income with some of his pension income


Read Partap's case study

Julie wants to know that her income is secure and has decided to purchase an annuity


Read Julie's case study

Dean is already taking a pension using income drawdown which is capped with a maximum amount that he can take each year

Read Dean's case study

Case Study – John


John, age 60, SIPP valued at £80,000 currently working 3 days a week earning £20,000 a year, doesn’t need any income yet but wants to pay off his mortgage

As John is still working he doesn’t need to draw an income from his SIPP but he does want to access a lump sum to pay off his mortgage and reduce his outgoings. John has 2 options open to him.

  1. He can take his full lump sum entitlement up front which is 25% of his fund paid tax free. He can use the £20,000 tax-free lump sum to pay off the mortgage. The remaining £60,000 will remain invested in his pension and be available to take an income whenever he wants to in the future.
  2. He can take the lump sum as a combination of a tax free payment with the balance taken as income taxed at his marginal rate of 20%. The exact amount John would need to use would depend on his tax code, but as an example he might use £23,530 of his pension fund which would be split between £5,882.50 as a tax-free lump sum and £14,118 income (after tax) to provide a total payment of £20,000.50.

The remaining £56,470 will remain invested in his pension and can be used to take a further lump sum and an income whenever needed or payments that are a combination of both in the future. Tax-free payments in the future may benefit from investment growth leading to a greater entitlement but the value of investments could go down as well as up. Whichever option John chooses, he can later decide to use any funds remaining in his pension to purchase an annuity from an insurance company if he decides security of income is important to him in the future.


Important Information

This information in these case studies are based on our current understanding of the pension rules from 6th April 2015. This example is provided for information only and is no intended as advice.

Please note that AJ Bell Management Limited and SIPPdeal Trustees Limited are not able to offer advice. TD Direct Investing is not able to offer advice on your pension. If you are unsure which option is suitable for your circumstances, you should seek advice for a suitably qualified financial adviser.

Taking income direct from your SIPP instead of buying an annuity from an insurance company can be complex. You need to consider the investment returns that you may be able to achieve and the level of income that you wish to take.

Understanding the risks


The investments made within a pension can fall as well as rise and you may end up with a fund at retirement that’s worth less than you invested. You can normally only access the money from age 55. Prior to making any decision about the suitability of a pension to meet your retirement needs, we recommend that you seek the advice of a suitably qualified financial adviser. TD Direct Investing does not provide investment advice. The tax treatment of this product depends on your individual circumstances and may change in the future.

Open a TD SIPP


Apply online now

The TD SIPP is administered by AJ Bell Management Limited. AJ Bell Management Limited is Incorporated in England and Wales under registration number 3948391. Registered Office: Trafford House, Chester Road, Manchester, M32 0RS. Authorised and regulated by the Financial Conduct Authority (Financial Services Register Firm Reference Number 211468). Sippdeal Trustees Limited is a wholly owned subsidiary of AJ Bell Management Limited, Incorporated in England and Wales under registration number 4050222. Registered Office: Trafford House, Chester Road, Manchester, M32 0RS. Sippdeal Trustees Limited does not conduct any regulated activities, and is, therefore, not regulated.

- Caption icon "CC" will not show a popup "Caption Menu" - Toggle Caption when click "CC" icon