DP Pensions Ltd

Member Benefits

Is there a limit on my benefits?

The benefits available from your SIPP or SSAS will depend on your age and the size of your fund at the time you take them. The lifetime allowance is the limit on how much you can build up in pension benefits over your lifetime while still enjoying the full tax benefits. The total value of all of your pension funds will be tested against the lifetime allowance. The lifetime allowance is £1,073,100 for the 2023/24 tax year. The lifetime allowance tax charge is being removed from the 6th April 2023 and the lifetime allowance will be totally abolished from the 2024/2025 tax year. Please see our update on the Spring Budget 2023

When can I take my benefits?

You may commence your benefits from your pension fund (known as ‘crystallisation’) at any time from age 55. There is no requirement for you to stop working or ‘retire’ when you take your benefits. You may be able to take your benefits earlier than age 55 in one of the following circumstances:

• You become seriously ill, or
• Your pension fund is made up of funds transferred from an existing pension with a lower pension age provided that the transfer to your SIPP or SSAS complied with certain HMRC requirements.

The minimum pension age will increase to age 57 from April 2028.

Can I take my benefits in stages?

Yes, you can crystallise a percentage of your pension fund and take benefits from this crystallised fund leaving the rest uncrystallised. This means that instead of taking your benefits in one go, you could take your benefits in stages by crystallising portions of your fund so as to suit your own personal requirements.

What are my benefit options?

The options available are:

• A pension commencement lump sum and a pension income. The income can be taken either as Flexi Access Drawdown, Capped Drawdown (subject to certain criteria outlined below) or an Annuity; or
• An Uncrystallised Funds Pension Lump Sum

Can I get help with understanding my options?

Taking your benefits is a complex process, which can lead to irreversible decisions. Taking large benefit payments from your pension fund may not be tax efficient or sustainable, especially if you are reliant on your pension to support you for the rest of your life. It is therefore essential that you have all of the information necessary to make an informed decision on what is best for you.
There are two main places that you can go to get help with understanding your options. These are:

• A financial adviser who is regulated by the Financial Conduct Authority
• Pension Wise, which is a Government service that offers free impartial guidance on your benefit options.

We will provide more details on these options when you come to take your benefits or on request.

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