Pensionbee and Flexi-Access Drawdown

green_man

dunstonh wrote: »

It is UFPLS. But I needed to include it in the scenario to meet the objective (as well as including method 4 which would be unsuitable for the objective as it draws more than needed but it is used by people who dont realise they didnt need to do that).

Aviva call UFPLS drawdown but they dont actually support regular income drawdown.

The terminology used by providers and others is a bit all over the place at the moment.

Yeh this is what I am struggling with at the moment, different providers, slightly different terminology. In particular I have found that if I want to draw a regular monthly sum using Phased drawdown, that on my proposed platform (Halifax SIPP) I am effectively incurring 12 UFPLS charges a year at £90 each.

Albermarle

If that is the case then I suggest you shop around for another SIPP. Some have an annual charge for drawdown and for a couple it is inclusive in the service charge .

r.jenkins36

I hope you will excuse me jumping in on this thread. I am in the process of consolidating 8 different (fairly minor) pension pots into 1 by transferring them to PensionBee. They have said I can withdraw my 25% tax free element at any time at no charge. But, as the fund is going up or down on a frequent basis, at what point is the amount "fixed" to qualify for the 25% to be tax-free? Thank you for help.

JoeCrystal

r.jenkins36 wrote: »

I hope you will excuse me jumping in on this thread. I am in the process of consolidating 8 different (fairly minor) pension pots into 1 by transferring them to PensionBee. They have said I can withdraw my 25% tax free element at any time at no charge. But, as the fund is going up or down on a frequent basis, at what point is the amount "fixed" to qualify for the 25% to be tax-free? Thank you for help.

Sound like PensionBee would be the best one to ask regarding this issue.

dunstonh

But, as the fund is going up or down on a frequent basis, at what point is the amount "fixed" to qualify for the 25% to be tax-free?

Depends on whether you are using phased flexi-access drawdown or traditional drawdown.

Your pot, in the growth stage is uncrystallised. That means you can draw 25% of the value of the uncrystallised funds. If you fully crystallise, it will be the value on that day. If you part crystallise, then that part will be against the value you are crystallised that day. Any amount not crystallised will have 25% available against the future value.

e.g.
£100k pension pot. You crystallise £40k to draw £10,000 as the 25% TFC.
So, £10k is paid to you. £30k is moved into crystallised funds and 60k remains uncrystallised.

If later the uncrystallised funds has grown to £70k, then you can take 25% of that 70k. If the crystallised fund has grown to say £50k then you cant get any more TFC as you had it.