Pension Draw Down DB VS SIPP

[halo34]

Probably being lazy but thought I would ask.

Hypothetical here - I wish was near this point but....

If you are allowed a 25% draw down of pension on pensionable age of 57 (SIPP) but also have a DB scheme (65 - with reductions for early drawn down).

If you get to 57 how is the 25% calculated - is it on the SIPP value or the SIPP + whatever calculation is required to work out the net value of the DB scheme?

[Car bon]

Unless explicitly linked (eg an AVC scheme) then they are separate, You can take 25% of the SIPP. The DB is a little more complex to calculate, but your provider will offer you a tax free cash lump sum with a reduced pension, or you can decline that & take the full pension with no lump sum.

Edited to correct DC to DB

Edited by Car bon on Friday 21st June 09:10

[Jockman]

To add to that the options from the DB offering will probably be fourfold to include levelling options based on your state pension kicking in at a future date.

Welcome to the lottery of life expectancy :-)

[halo34]

Thankyou !