PCLS Timescale

ffacoffipawb

dunstonh wrote: »

True but it is so rare to see anyone using it with SIPP functionality. Plus, we see so many posts where people use the term SIPP when they actually just mean pension.

If the OP is using SIPP functionality, then chances are that there are plenty better. If they are only using PPP functionality, then Royal London is one of the better ones in that respsect and the PPP side would be expected to be quicker.

The quickest SIPPs pay out within 20 minutes (using CHAPS). Most wait until settlement, so about a week. RL PPP is about a week (providing no plan change required).

Due to my 35% cash position I have no need to sell anything, but my SIPP provider are still quoting 5-10 working days to access the cash even though 20 minutes should be nearer the mark.

My SIPP is made up of a transferred in DC from two old pensions plus 6 years contracting up to 2009 when I was paying in silly money. Also its value has been aided by the markets and not through much skill or judgement.

Anyway, I will soon see how long it takes in practice. I am only doing a full crystallisation for three reasons ...

(1) Dont want to risk the PCLS being capped by a future givernment
(2) Pretty much at LTA with my deferred DB pensions. SIPP approx 70% LTA.
(3) Still sal sac contributing to works stakeholder pension (matching 6%)

Due to (2) and only CPI growth in LTA any LTA problem is just going to get worse as I hope my SIPP grows faster than CPI.

EdSwippet

ffacoffipawb wrote: »

Due to my 35% cash position I have no need to sell anything, but my SIPP provider are still quoting 5-10 working days to access the cash even though 20 minutes should be nearer the mark.

Annoying, isn't it? The wrinkle for the provider is not raising the cash, it's deciding how much of it to send you as a PCLS. That varies day-to-day since you have chosen to crystallise your entire pot. If you had chosen to crystallise a fixed sum, say £400k, their job would be somewhat easier.

Still, it's frustrating. I crystallised one of my three pensions a couple of months ago -- same reason as you, hitting the LTA. Aviva, in this case. You might think they would be slow and process-bound, but in fact it was all smooth and trouble-free. They accepted forms by email, kept me fully informed of the process, sold investments for me as needed for the PCLS so I didn't have to raise the cash explicitly, and moved the remainder into a segregated drawdown account all within around a week and a bit. Most of this was waiting for the trades they needed to do to settle at the fund provider. Clearly a manual process for Aviva, but executed well. And significantly, at absolutely no extra charge to me.

I'm now embarking on the same at Interactive Investor. At first blush, it looks like they will be somewhat less efficient than Aviva, and they charge extra for drawdown too. Crystallising a pension is something that most people do on average exactly once in a lifetime, so I imagine there is little incentive for a pension provider to set up any sort of seamless online process for it. For most people, some slowness and timescale uncertainty will make little or no difference. For those of us where it does though, it's a bit of a pain.

ffacoffipawb

EdSwippet wrote: »

Annoying, isn't it? The wrinkle for the provider is not raising the cash, it's deciding how much of it to send you as a PCLS. That varies day-to-day since you have chosen to crystallise your entire pot. If you had chosen to crystallise a fixed sum, say £400k, their job would be somewhat easier.

Still, it's frustrating. I crystallised one of my three pensions a couple of months ago -- same reason as you, hitting the LTA. Aviva, in this case. You might think they would be slow and process-bound, but in fact it was all smooth and trouble-free. They accepted forms by email, kept me fully informed of the process, sold investments for me as needed for the PCLS so I didn't have to raise the cash explicitly, and moved the remainder into a segregated drawdown account all within around a week and a bit. Most of this was waiting for the trades they needed to do to settle at the fund provider. Clearly a manual process for Aviva, but executed well. And significantly, at absolutely no extra charge to me.

I'm now embarking on the same at Interactive Investor. At first blush, it looks like they will be somewhat less efficient than Aviva, and they charge extra for drawdown too. Crystallising a pension is something that most people do on average exactly once in a lifetime, so I imagine there is little incentive for a pension provider to set up any sort of seamless online process for it. For most people, some slowness and timescale uncertainty will make little or no difference. For those of us where it does though, it's a bit of a pain.

No further forward, please see my new thread ...

https://forums.moneysavingexpert.com/discussion/6014121/pcls-sloooooooow

A complaint message has now been sent, not asked for compo just asked for definitive timetable for when I can receive my PCLS. Also stated this is a complaint as per FCA requirements.

Maybe someone will actually get their fingers out now.

I doubt very much that there is a "dedicated checking team". I work in financial services myself in a similar industry and have never come across such a thing.