How good are HL at doing things online for withdrawals?

Notepad_Phil

Mrs Notepad is about to start making withdrawals from her small SIPP and would like to set everything up online/via post rather than having to talk to anyone over the phone - to be honest so that I can help her fill in all the paperwork and explain the terminology.

The small pot size make HL's costs look reasonable and from what I can see they don't seem to insist on any phone calls (unlike Fidelity) - but can anyone confirm this before she goes ahead and transfers across. She'll be doing the annual £2880 manoeuvre and will be looking to take out about £6000 per year (ideally via a monthly sum, but it may also be via a couple of UFPLS withdrawals as that might make things easier).

Thanks all

Linton

I do not believe setting up withdrawals from SIPPs can ever be done over the phone - the details need to be clearly written down, a phone call would be too error prone.  AJBell have online forms and Bestinvest require everythng to be done via post.

squirrelpie

Notepad_Phil said:

The small pot size make HL's costs look reasonable and from what I can see they don't seem to insist on any phone calls (unlike Fidelity) - but can anyone confirm this before she goes ahead and transfers across. 

She'll be doing the annual £2880 manoeuvre and will be looking to take out about £6000 per year (ideally via a monthly sum, but it may also be via a couple of UFPLS withdrawals as that might make things easier).

Sorry, I can't answer your question about doing everything online or via the post. That's generally my preference too but I did find it easier to confirm things with them on the phone when I did something similar last year. But most of it was online+post. It may be possible to do it all.

I think you'll find taking out a regular monthly sum to be a pain, depending how you're intending to do it. I wanted to set up a monthly UFPLS but they can't do that (unless it's changed since last year). Instead I made a single UFPLS payment to another account and am making regular transfers from there. I'll do the same again later this year and believe I will have to jump through all the nanny-state rules about risk assessment and understanding what I'm doing etc all over again.

AnotherJoe

You can avoid the painful telephone call by filling in a form, for this form/call it is necessary to do this ever year re teh £3600 as its new SIPP in effect. I hit this every year when i withdraw my £720 from the £3600 .  I get £720 in my bank, the £2880 gets folded into the "main SIPP" from where the drawdown comes from.  I usually just endure the annoying nanny-state questions to get it over and done with.

However, you only need do this once per SIPP, so for the pension she'll be taking £6k out of she can just do it once and then arrange a regular payment no more calls needed so thats not too bad.

Thats my case, I only had to call the once (could also have filled in a form i think ) and now the monthly payment is set and that doesn't need to be renewed every year. So it isnt a pain with a regular payment at all.

I also seem to recall that when my wifes SIPP went into drawdown she spoke to them said she was happy for me to take the call after that, and then she was out of the loop.

 

squirrelpie

AnotherJoe said:

So it isnt a pain with a regular payment at all.

That depends on what you're doing. If you take all the tax-free money out at the beginning and then set up a regular drawdown payment for the remainder, what you say is possible. If you don't want to do that, but instead take out regular UFPLS (i.e. taxable and associated tax-free money together) then it's a right royal pain as I said.

NedS

squirrelpie said:

AnotherJoe said:

So it isnt a pain with a regular payment at all.

That depends on what you're doing. If you take all the tax-free money out at the beginning and then set up a regular drawdown payment for the remainder, what you say is possible. If you don't want to do that, but instead take out regular UFPLS (i.e. taxable and associated tax-free money together) then it's a right royal pain as I said.

So basically you have to jump through hoops each time you access uncrystallised funds?

So if you were to crystallise the whole pot upfront and take the 25% tax free lump sum, withdraws from the remaining crystallised pot are straight forward having already completed the paperwork.

If however you take lump sums from uncrystallised funds (UFPLS - 25% tax free, remaining 75% taxed at marginal rate), you need to complete the paperwork on each occasion for new access to uncrystallised funds.

molerat

To take a UFPLS it is a case of filling in the on line suitability questionnaire after which they send out an illustration along with a form to complete.  Whole thing takes about 10 days from questionnaire to money appears in your bank.  Making the withdrawal form on line would be easier but maybe they want a wet signature.

Albermarle

So if you were to crystallise the whole pot upfront and take the 25% tax free lump sum, withdraws from the remaining crystallised pot are straight forward having already completed the paperwork

I think if you crystallise everything, take the 25% TFLS and start a regular drawdown plan at the same time , then it is job done .

If you crystallise and then start drawdown later , I suspect more paperwork/phone calls needed. Maybe depends on the platform. I am not sure.

AnotherJoe

Wow. So, just for the avoidance of doubt, People are saying if you do want to do a regular UFPLS every month, HL make you fill a form out every month ? insanity. 

squirrelpie

AnotherJoe said:

Wow. So, just for the avoidance of doubt, People are saying if you do want to do a regular UFPLS every month, HL make you fill a form out every month ? insanity. 

As a special discretion, they only make you fill out edit: the paperwork the risk assessment every six months

Still crazy unworkable - risk assessment followed by form-filling and signature. What annoys me is that they acknowledge it's perfectly legal to complete the process once and sign up to an irrevocable annuity, or to a regular drawdown that you might be able to change - I dont know. But for some reason they think that a regular UFPLS is far too risky to allow just one assessment. Maybe I should complain to the FCA that their rules are too complicated/discriminatory for providers to understand and interpret sensibly. (since some providers allow for recurring UFPLS to be set up, so it's clearly possible)

Notepad_Phil

Many thanks to all, it does look as though HL is going to be the best bet for Mrs Notepad from the current list of suspects. It's a pity that the Vanguard SIPP still hasn't got around to allowing withdrawals as we'd have liked to see what their processes were to see whether they'd be even better than HL will.

Cheers.