Interactive Investor UFPLS

MK62

Having transferred from Standard Life to II last year, it's approaching time to take the first UFPLS from II...
I've been through their guides, but can't seem to find out how you designate where the withdrawal is taken from........is it just a case, as with HL, where it's your responsibility to make sure there is enough cash in the SIPP to fund the withdrawal........or is there more to it than that?

poseidon1

You manage where the cash comes from for all your UFPLS withdrawals.

Ideally you could have investments generating regular dividends/interest ( natural yield ),  building up an ongoing pot of cash for future withdrawals together with surplus cash you might generate on trimming or changing investment positions.

UFPLS is a pretty hands on arrangement with these platform sipp providers, fine whilst you are still relatively young with all critical faculties intact, but could become a bit of chore as you get much older and perhaps not quite so sharp.

MK62

Thanks for your reply........I've been using UFPLS for the last 6 years (first with HL, then with Standard Life (sort of.....it's really phased FAD in disguise with them)........but this will be the first one from II.......is there a section in their online form/process where you designate where the money to fund the UFPLS comes from?.......their guides don't seem to mention it (HL were very clear that an UFPLS would be funded from cash in the SIPP, and it was up to me to ensure there was enough cash.......SL simply took proportionate amounts from each of your investment funds.....II don't appear to say anything about this, unless I missed it on their site)

alwayslearning77

Yes you have to sell the amount you want to withdraw out of your funds first (so you choose where the money comes from) so its goes into your cash balance, otherwise they send a message saying “failed benefit request”. They do keep trying to do the UFPLS several times over several days if the cash isn’t there to begin with.  

handful

I will be taking my first UFPLS from my II Sipp soon. The way I understand it is you have to have sufficient cash available for the UFPLS amount. I'm sure I saw it on the site somewhere but I can't find it now! I think it was somewhere in the step by step guide. I know if you do FAD you can crystallise and stay invested and it gives a % value to the crystallised pot. Even cash in this pot can go up and down in value.

MazzaMan

handful said:

I will be taking my first UFPLS from my II Sipp soon. The way I understand it is you have to have sufficient cash available for the UFPLS amount. I'm sure I saw it on the site somewhere but I can't find it now! I think it was somewhere in the step by step guide. I know if you do FAD you can crystallise and stay invested and it gives a % value to the crystallised pot. Even cash in this pot can go up and down in value.

Yes you have to have the cash in your SIPP else the payment will fail, ask me how I know…

MK62

There was  enough cash in the SIPP to fund the UFPLS.......so sent the online request in on 17th April........they say it can take "as little as" 10 days,, so I'll have to wait and see what "as little as" actually means here....😉