Max UFPLS withdrawl before paying any tax ?

MK62

PJM_62 wrote: »

My scheme only allows FLUMP.
I guess I'm looking for best way to get the 100k out, in as few years as poss, paying no tax.
As well as my 7.5k DB, I have ISA savings to top up my FLUMP withdrawals.
I'm looking to achieve 18k per year, no tax payable.

If your scheme only allows "FLUMP" (or UFPLS), then you have little choice but to go down that route, unless you are prepared to transfer to another scheme/platform, and whether that would be cost effective is impossible to say without knowing anything about your current SIPP.

Is your DB pension being paid at the scheme's normal retirement age (ie not subject to actuarial reduction for taking it early)?

PJM_62 wrote: »

Yeah I get those 16.6k and 6.6k figures.
But I think what's confused me is nomore saying..
There is also another option in that you could take any amount you want out tax free each year by crystallizing...

That's phased drawdown, whereby you move your uncrystallised funds into drawdown in stages, rather than all at once at the start.
If your current scheme only supports UFPLS, then it's not an option for you.

Pension_Geek

Does it offer partial UFPLS or full?

Bear in mind, that there is every chance a payment taken as UFPLS will have tax deducted by the pension provider, which you will need to get back via a rebate.

PJM_62

MK62 wrote: »

Is your DB pension being paid at the scheme's normal retirement age (ie not subject to actuarial reduction for taking it early)?

It will be early retirement at 55 / 56. The DB pension is reduced to about 7k, with a 21k TFLS.
I also have a military DB pension kicking in at age 60. 6.5k, with a 19k TFLS.
The FLUMP pot will hopefully be about 100k.

MK62

That complicates things a touch.......also what's your current age and state pension position?

At 60 you will have a £6.5k DB pension kicking in as well as a £7k one already in payment.
That will use up your personal allowance, effectively then making all SIPP UFPLS withdrawals subject to min 20% tax on 75% of the withdrawal.

Depending on the reduction factor in use on your 1st DB pension, and its normal retirement age, have you considered not taking it as early, and living off the SIPP (and perhaps SIPP+military DB pension from 60), supplemented by small ISA withdrawals to make up your £18k pa target?

Of course, it's all going to come down the actual figures involved.....without them it's all guesswork. You also need to factor in the SIPP costs as well.....

Itsarichmansworld1

I am in a similar position to PJM 62. I am looking to transfer my SIPP to another pension provider to achieve reduced fees. But as I am close to drawdown age I want to go with a provider that offers phased drawdown as described by NoMore. I like the look of iWeb's low fees but when it comes to drawdown they seem to say that you have to take 25% tax free first, no mention of phased drawdown. My ideal would be a phased drawdown platform with an interface a bit like an online bank account and flexible so that I could vary withdrawals from the crystallised part of my SIPP and be clear about where I stood with 25% tax free bit etc. But that seems very hard to research in advance and I don't want to be stuck with a clunky inflexible platform! Any thoughts or recommendations are very welcome.

PS This is my first post to the boards so apologies in advance for making it a request for help and also if I have posted it in the wrong place!!

shinytop

I think they do allow what you want. Although it's not clear from their blurb, this form
https://www.iweb-sharedealing.co.uk/PDFs/Benefit-Form-drawdown-and-lump-sum-payments.pdf
seems to, in 4A b), allow you to crystallise part of your fund. I went with II in the end, which definitely does this and seems a bit less clunky.