Stupid question about SIPP drawdown

[BullDog]

To answer a question from above, Interactive Investor make no extra charge for being in drawdown. The SIPP costs the same drawdown or not. If changed a while ago, prior they charged extra for drawdown, there might still be some old information out there which says II charge extra for drawdown. In fact, no they don't.

For total simplicity, I do recommend thinking about doing an annual withdrawal in March of whatever dividend has accrued over the previous year. It doesn't get any simpler than that. Ofcourse, if you wished to, you can then chop the withdrawal up into 12 chunks if you want the same amount each month for the next year. Horses for courses, naturally.

[Gilgongo]

For total simplicity, I do recommend thinking about doing an annual withdrawal in March of whatever dividend has accrued over the previous year. It doesn't get any simpler than that. Ofcourse, if you wished to, you can then chop the withdrawal up into 12 chunks if you want the same amount each month for the next year. Horses for courses, naturally.

OK, but the thing I'm unclear about is how to get the SIPP into a state in which that's possible without selling all or some of the holdings. It's not as if they just let you take the divis out to your bank account once you turn 55. There's all this stuff about TFLS and UFPLS and drawdown.

I've sent them a mail to ask.

Thanks all for the replies.

[BullDog]

For total simplicity, I do recommend thinking about doing an annual withdrawal in March of whatever dividend has accrued over the previous year. It doesn't get any simpler than that. Ofcourse, if you wished to, you can then chop the withdrawal up into 12 chunks if you want the same amount each month for the next year. Horses for courses, naturally.

OK, but the thing I'm unclear about is how to get the SIPP into a state in which that's possible without selling all or some of the holdings. It's not as if they just let you take the divis out to your bank account once you turn 55. There's all this stuff about TFLS and UFPLS and drawdown.

I've sent them a mail to ask.

Thanks all for the replies.

You don't do anything except tell them what you want to do. Presuming you have dividends accruing now. Then in March 2023, you tell them you want to drawdown the amount you have available in the SIPP. No need to sell anything or do anything beyond telling II what you want. It's so easy to do. No different than drawing cash from the trading account or ISA account. You only need to sell something if you want to draw down more than you have ready in cash. In that case, just sell what you want on line. Then tell II how much money you want to drawdown. Hope that helps.