AJ Bell Flags 15 SIPP Pitfalls as Savers Face £60,000 Allowance and 2028 Age Shift
Updated
Updated · Express · Aug 16
AJ Bell Flags 15 SIPP Pitfalls as Savers Face £60,000 Allowance and 2028 Age Shift
1 articles · Updated · Express · Aug 16
Summary
AJ Bell reviewed 15 of the most-searched SIPP questions, warning that savers seeking more control over retirement money can make costly mistakes on contributions, withdrawals and transfers.
£60,000 is the standard annual pension allowance, though non-earners are limited to £3,600 with tax relief and taxable withdrawals can trigger the MPAA, cutting future tax-relieved saving to £10,000 a year.
55 is the current minimum age to access a SIPP, rising to 57 in 2028; most savers can usually take up to 25% tax-free, while drawdown offers flexibility but risks depleting retirement income.
Transfers and extra SIPP saving can backfire if savers give up employer matching, defined-benefit guarantees, guaranteed annuity rates or overlook exit charges and platform, fund and trading fees.
April 2027 will bring pensions into the inheritance-tax regime, adding urgency to beneficiary planning even as SIPPs remain attractive for broad investment choice and tax relief.