Does anyone know if Aviva offer monthly UFPLS withdrawals?

GazzaBloom

I don't plan to take a tax free lump sum from my workplace DC pension, which has recently been moved by the company to Aviva. In retirement, my intention is to take equal monthly amounts consisting of 25% tax free and 75% taxable income. Ideally, I don't want to crystallise a large sum so would prefer monthly UFPLS. Does anyone know if Aviva offer that? And is it a faff needing phone calls or paperwork every month?

Fall back would be to crystallise a years worth of flexi-drawdown at a time and then draw that in equal amounts monthly 25 tax free/75 taxable.

Thrugelmir

A monthly drawdown doesn't equate to a lump sum. 

GazzaBloom

Thrugelmir said:

A monthly drawdown doesn't equate to a lump sum. 

Agreed, not sure what your point is? I don't want or plan to take a lump sum. I'm trying to understand if Aviva only offer flexi-drawdown or can offer UFPLS and what has least admin.

Dazed_and_C0nfused

I think the point is,

Uncrystallised funds pension lump sums

dunstonh

Does anyone know if Aviva offer monthly UFPLS withdrawals?

They do on the Aviva platform.     Not the legacy plans though.

woolly_wombat

GazzaBloom said:

You know the point of the question I'm asking, can Aviva offer monthly UFPLS without the need for tedious admin each month or much I go flexi-access drawdown? 

Access method of choice for many of us, and would be interesting to know which of the providers offer it.

Unfortunately I can’t answer the question!

SeniorSam

Wise decision not to take all the cash, but not sure of the Aviva answer if you Really want Aviva, a phone call would help.

Normally a workplace pension would be transferred to a Flexible SIPP  (Self Invested Persona Pension) with a company of your choice. Various 'platforms' are available and the charges and services do differ. Once you have transferred, the SIPP can have two accounts, the first being the uncrystalised amount (to which to transfer is made) and the second being a Drawdown account.

You decided how you wish to invest the capital into shares(higher risk) or Funds with a wider spread and lower risk but In order to take withdrawals, you transfer capital from the SIPP to the Drawdown account and any invested capital needs to be converted to cash, as only cash can be withdrawn. Then decide on the amount.

Any transfer from Sipp to Drawdown could be taken in cash with 25% tax free and the rest taxed at your normal rate of tax. So if you took £500 pm, £125 tax free and the balance at normal tax rate deducted before payment

Sometimes, those with less knowledge think that taking out all the tax free cash is the right way to go. It is not. As the potential to increase the tax free availability increases within the SIPP.

Lot more rules that can be given here, so you need to read up on them.

Importantly, if you arrange the transfer through a financial adviser, then that adviser will be receiving commission on your pension on an ongoing basis, at a loss to you.  You can do it yourself, but need to have the transfer recommended by an adviser in order for the transfer to be accepted.

I did this myself many years ago and have more than doubled the value and it's still growing (not whilst Mr Putin is stamping his feet though.)

Happy to help more if needed.
Sam

GazzaBloom

SeniorSam said:

Wise decision not to take all the cash, but not sure of the Aviva answer if you Really want Aviva, a phone call would help.

Normally a workplace pension would be transferred to a Flexible SIPP  (Self Invested Persona Pension) with a company of your choice. Various 'platforms' are available and the charges and services do differ. Once you have transferred, the SIPP can have two accounts, the first being the uncrystalised amount (to which to transfer is made) and the second being a Drawdown account.

You decided how you wish to invest the capital into shares(higher risk) or Funds with a wider spread and lower risk but In order to take withdrawals, you transfer capital from the SIPP to the Drawdown account and any invested capital needs to be converted to cash, as only cash can be withdrawn. Then decide on the amount.

Any transfer from Sipp to Drawdown could be taken in cash with 25% tax free and the rest taxed at your normal rate of tax. So if you took £500 pm, £125 tax free and the balance at normal tax rate deducted before payment

Sometimes, those with less knowledge think that taking out all the tax free cash is the right way to go. It is not. As the potential to increase the tax free availability increases within the SIPP.

Lot more rules that can be given here, so you need to read up on them.

Importantly, if you arrange the transfer through a financial adviser, then that adviser will be receiving commission on your pension on an ongoing basis, at a loss to you.  You can do it yourself, but need to have the transfer recommended by an adviser in order for the transfer to be accepted.

I did this myself many years ago and have more than doubled the value and it's still growing (not whilst Mr Putin is stamping his feet though.)

Happy to help more if needed.
Sam

Thank you.

This helps: https://www.aviva.co.uk/adviser/documents/view/lf01125c.pdf

dunstonh

Access method of choice for many of us, and would be interesting to know which of the providers offer it.

There have been a couple of other threads with posts in the last few days that have discussed this.   Intermediary providers and platforms offer it but DIY providers/platforms seem to mostly not.   Someone said pensionbee offer it.  But no-one has mentioned a DIY platform that does.   Fidelity offers it on the intermediary side.  So, they may offer it on the DIY side.  But then again, they have a history of changing product terms and functionality to suit different distribution methods.   Even their charges are different on the intermediary side to the DIY side.

xylophone

https://www.aviva.co.uk/retirement/using-your-pension-money/taking-some-of-your-pension/

GazzaBloom

I want to maximise the 25% tax free amount over the length retirement, ultimately looking to be as tax efficient as possible, so crystallising as little as I can each time would seem the best way so the uncrystallised pot can grow over time increasing the 25% tax free benefit amount I can draw over that time. or am I mistaken?

I expect to keep within the 20% tax band in retirement. 

The only advantage I can see of crystallising a large amount at the start of retirement and drawing the 25% tax free first would be to protect the ability to go back to paid employment before drawing any of the taxable 75% in a job with a pension plan and so retain the ability to pay ups to £40K into the pension.