Checking drawdown terminology and how it works

squirrelpie

shinytop wrote: »

I don't think it's a case of "you can immediately withdraw up to £10k cash free". With HL, when you crystallise your chosen amount, the whole applicable tax free amount is transferred, in cash, to your nominated bank account.

They send you whatever amount you wish to take - there is a specific question on the application form that I have in front of me. I believe you ticked the box 'I would like to take the maximum tax-free cash available' and did not put a number in the box 'Lower amount' or tick the box 'None'. It's your choice, not theirs.

coyrls

Sea_Shell wrote: »

On this subject...is it possible to then transfer a crystallised pot to another provider? Eg if they changed their fees or another provider became cheaper? Or are you stuck with them throughout the whole drawdown period?

Yes it is. I have done it (AJ Bell to ATS).

Albermarle

On this subject...is it possible to then transfer a crystallised pot to another provider?

Yes it is . Not sure if every provider accepts them but some do , although you might have to discuss it with them first , whereas with uncrystallised pots this is not usually necessary.

shinytop

squirrelpie wrote: »

They send you whatever amount you wish to take - there is a specific question on the application form that I have in front of me. I believe you ticked the box 'I would like to take the maximum tax-free cash available' and did not put a number in the box 'Lower amount' or tick the box 'None'. It's your choice, not theirs.

OK fair enough but why would you not want to take the full amount?

Albermarle

OK fair enough but why would you not want to take the full amount?

This was mentioned on another thread . Normally for the vast majority of people it is obviously best to take advantage of all tax free cash available , either all at once or in stages.
There seem to be a couple of situations where refusing to take some if the TFC might work for a small number of people. I do not remember the exact details but I think was mainly concerned with people who were primarily concerned with protecting money from IHT within the pension.

squirrelpie

shinytop wrote: »

OK fair enough but why would you not want to take the full amount?

It seems a pretty unusual idea to me too. I can only imagine if you want to maximise regular income payments and have no need of a lump sum (or maybe don't trust yourself with it). I think it ought to be possible to arrange a series of UFPLS, like a standing order, without wodges of paperwork for every payment.