Early retirement and my pension SIPP

[SpottydogDomino]

I am a woman of 63. My state pension age is 66. I currently work 20 hours per week earning £700 per month. I have £70k in my self invested personal pension (SIPP) pot after taking the 25% tax free years ago (now spent on a car and new kitchen).

I want to retire now. I am looking after grandchildren more and more and get very tired and have had enough of work.

My question is: Can I take £700 per month out of my SIPP? I know I will pay tax on this and deplete the pot. I presume if I am not earning from any other source I can claim the tax back at the end of the tax year.

My husband has a very large SIPP pot so we will not struggle for money when he retires in 2 years time.

What would you do? Can you think of any pitfalls I have not thought of? Why do I feel so guilty wanting to retire like I am doing something naughty!! My husband has no views and tells me to do what I think best.

I'm looking at doing similar - although with a SSAS. My understanding is the same as yours. Just bear in mind that the interest return is pretty rubbish at the moment (even invested properly), and your pot will run out in less than 10 years. Which I'm sure you are aware of!

Scary decision, isn't it!

Ajandjjmum - thanks for your response. Yes, very scary.

It is sorted now. I am going to take £600 per month from my SIPP and will review in 2 years. I will deplete my pot by £15k ish. It is do-able (according to our SIPP fund manager). I can also work part time 10 hours per week whilst taking the £600 just to top up to below the tax threshold and step up my work hours again when the youngest goes to nursery.

Bit scary but done now! I am more sure each day it was the right decision but my what a worry it was deciding!