How does drawdown work in Interactive Investor SIPP?

anselld

Hi,
   I am considering moving my SIPP to II in order to reduce fees, however I am unsure how their SIPP offering works in practice for drawdown.
   My funds are currently about 75% crystallised and I want to be able to take income from the crystallised pot in order to avoid it growing too much towards a second LTA test at 75.
   With my current provider, Aegon, it is straightforward to monitor the current value of the crystallised funds since they have completely separate accounts for crystallised and uncrystallised funds.  However I think I read somewhere that II just manage it behind the scenes with percentages.  So can anyone in partial drawdown with II explain how this works?   (Or doesn't work as the case may be.)

thanks

IvanOpinion

You may have already read this but does this help?
https://www.ii.co.uk/ii-accounts/sipp/income-drawdown

Mutton_Geoff

IvanOpinion said:

You may have already read this but does this help?
https://www.ii.co.uk/ii-accounts/sipp/income-drawdown

It doesn't answer the OP's original question. I also have a single SIPP with II that contains both crystallised and uncrystallised funds (ie tested against my LTA). I wonder also how my drawdown might work and how to pay and tax on the uncrystallised amounts.

Linton

AIUI II just record the % of your penion pot which has been crystallised.  This is updated when you withdraw taxable money or crystallise more of your pot.  Unlike some other platforms you dont have separate portfolios.

anselld

Linton said:

AIUI II just record the % of your penion pot which has been crystallised.  This is updated when you withdraw taxable money or crystallise more of your pot.  Unlike some other platforms you dont have separate portfolios.

I guess that works, sort of.
Is the percentage crystallised visible online or do they tell you each time it changes, or do you need to contact them to find out? 

[Deleted User]

I am sure that a new feature was added to ii last year which showed the value of it - somewhere hidden in the menus (I can't see it as I transferred my SIPP to HL from ii)

LHW99

This was from one of the posters here at the end of last year (soory can't remember who!)

If you go into "My Account"/"Access My Pension". Then under "If you'd like to create a new illustration, click continue", press the Continue button.

It will then chug away for a minute or more and will eventually come back with "Your pension information was obtained successfully. Please click above to continue.". Press the Continue button again.

Now click on "Tax free lump sum only". It then will show you your approximate Total Fund value (crystallised plus uncrystallised) and then a figure for Crystallised and a second figure for Uncrystallised. That should give you what you want.

You can then abandon this by clicking on one of the links at the top to navigate back to your account.

It's a bit long winded but I think it gives you the figures you wanted.

Haven't tried it myself yet.

shinytop

Deleted_User said:

I am sure that a new feature was added to ii last year which showed the value of it - somewhere hidden in the menus (I can't see it as I transferred my SIPP to HL from ii)

It was, but as of a few minutes ago, it doesn't seem to one working, for me at least.  It's choice under SIPP, very simple and instant.  

Mutton_Geoff

It's under the tab SIPP/Benefits/Lifetime Allowance

https://secure.ii.co.uk/webbroker2/app.sp#/sippAdmin#life_time_allowance

They've got mine wrong so sent a secure message to sort out.

anselld

Mutton_Geoff said:

It's under the tab SIPP/Benefits/Lifetime Allowance

https://secure.ii.co.uk/webbroker2/app.sp#/sippAdmin#life_time_allowance

They've got mine wrong so sent a secure message to sort out.

Ah, ok I see it ...

crystallised & uncrystallised fund values

Your uncrystallised fund value is £x.xx

Not good news that they can get it wrong though.  Confusing to keep track of as well because this number will change purely through investment growth, not just when there is an income or crystallisation event.

Mutton_Geoff

anselld said:

Mutton_Geoff said:

It's under the tab SIPP/Benefits/Lifetime Allowance

https://secure.ii.co.uk/webbroker2/app.sp#/sippAdmin#life_time_allowance

They've got mine wrong so sent a secure message to sort out.

Ah, ok I see it ...

crystallised & uncrystallised fund values

Your uncrystallised fund value is £x.xx

Not good news that they can get it wrong though.  Confusing to keep track of as well because this number will change purely through investment growth, not just when there is an income or crystallisation event.

The uncrystallised amount was transferred from another scheme and is only worth 1/20th of a percent (ie 0.0005) of my total SIPP value. It has stayed in cash since transfer so no growth to take into account. For housekeeping, I've asked II to pay the LTA tax on it so my entire SIPP stays crystallised. I have another DB scheme to move into it shortly and they will be deducting full LTA exceedance tax from that amount before the transfer.