25% TFLS from Hargreaves Lansdown sipp

Mike564

I have a SIPP with Hargreaves Lansdown. Its just a cash holding. I recently turned 55. I was hoping to take a 25% tax free lump sum but have been advised by them that this is not an option with this account.
I'm still in online conversation with them but I thought I could take the 25% tax free as soon as I was 55.
Any replies appreciated

Madeinireland

Well I have the same so interested to know why they are not allowing you to take the tax free lump sum ???

ffacoffipawb

Tax free 25% is allowable from 55. Must be some misunderstanding somewhere. Hope my dealing with AJ Bell next month is easier!!!

squirrelpie

You can https://www.hl.co.uk/retirement/preparing/tax-matters/tax-free-cash


It seems very likely there's a misunderstanding. It might be easier to sort it out on the phone rather than online.

ffacoffipawb

And please report back what the issue was.

saver_ali

You can't take out 25% as if it's a bank account. You only get it if you crystallise the SIPP (fully or partially). 75% goes into a separate drawdown account with HL and 25% is paid out as cash. We've just done that with my husband's HL SIPP with no problem. It's called an application for flexible drawdown.
Why don't you give Pensionwise a call, and talk it through with them? They will explain what you can do, and whether it's right for you.

dunstonh

I was hoping to take a 25% tax free lump sum but have been advised by them that this is not an option with this account.

Is this the individual retail SIPP used by DIY investors or one of the workplace pensions they operate?

The individual retail SIPP can allow you to take the 25% from age 55 as long as the funds are uncrystallised.

AnotherJoe

Ive done it several times with HL ( individual SIPP not associated with a company), so seems there's a misunderstanding somewhere.

First time you have to go through a faff of nanny state forms saying you know what you are doing you might be left penniless blah blah blah. Maybe they meant you cant just take it out immediately in a phone call?

xylophone

I have a SIPP with Hargreaves Lansdown. Its just a cash holding. I recently turned 55. I was hoping to take a 25% tax free lump sum but have been advised by them that this is not an option with this account.

I'm with everybody else - there seems to have been a misunderstanding.
https://www.hl.co.uk/free-guides/drawdown?SQ_DESIGN_NAME=ppc&theSource=PCGFD&Override=1&adg=G+DDL+PDD+E+TCPA&gclid=EAIaIQobChMIzMHFw-224gIViRrTCh0CNAlsEAAYAiAAEgIzVPD_BwE

parcival

Agreed - have done it myself and was straightforward as far as I remember......