Withdrawal from SIPP.

tilllymse

Hi, I was wondering how long people have to wait between asking for a withdrawal from a SIPP and receiving it?  Thank you.

dunstonh

Anything from 20 minutes to about a month depending on method used and provider.

tilllymse

Thanks dunstonh.  Confusing.

I first asked an advisor on 11th March via telephone for an amount which had been calculated on the tax year 2023/4.  This was after I had asked another person in the company the same thing on 8th March and he had passed me on to the advisor.  I made it very clear that I was wanting the withdrawal in the tax year 2023/4.   The advisor said it should take approx 10 days and asked me to go in to see him on 14th March, I thought to sign the forms to release the money (which I did) and again the tax figures were discussed for 2023/4.  The money was not released into my bank until 9th April at which point I had been dragged into the 40% tax bracket because my income for this year will be higher than last years, which means of course that I have had to pay an extra amount of tax.  I am really upset that at no point in time was I kept updated on what was happening and told that it would not clear until this tax year.

Marcon

tilllymse said:

Thanks dunstonh.  Confusing.

I first asked an advisor on 11th March via telephone for an amount which had been calculated on the tax year 2023/4.  This was after I had asked another person in the company the same thing on 8th March and he had passed me on to the advisor.  I made it very clear that I was wanting the withdrawal in the tax year 2023/4.   The advisor said it should take approx 10 days and asked me to go in to see him on 14th March, I thought to sign the forms to release the money (which I did) and again the tax figures were discussed for 2023/4.  The money was not released into my bank until 9th April at which point I had been dragged into the 40% tax bracket because my income for this year will be higher than last years, which means of course that I have had to pay an extra amount of tax.  I am really upset that at no point in time was I kept updated on what was happening and told that it would not clear until this tax year.

Make a formal complaint.

Are you going to be making pension contributions this tax year? If so, you could claim higher rate relief to the extent you've paid higher rate tax in the first place. 

dunstonh

I first asked an advisor on 11th March via telephone for an amount which had been calculated on the tax year 2023/4.  This was after I had asked another person in the company the same thing on 8th March and he had passed me on to the advisor.  I made it very clear that I was wanting the withdrawal in the tax year 2023/4.   The advisor said it should take approx 10 days and asked me to go in to see him on 14th March, I thought to sign the forms to release the money (which I did) and again the tax figures were discussed for 2023/4.

IFAs key in the instruction themselves.   And its IFA platforms that are the quickest typically as the platforms don't need to jump through the same hoops as DIY platforms.   The deadline for money already in cash was typically around 27th March.  If it wasn't in cash you would need 3-4 working days earlier.   (some platforms were later, some a few earlier)

Exceptions may apply where its old fashioned products requiring paper forms that are posted to the provider.  Most adviser platforms do not require any forms.  So,  I wonder if this is older style product or its an FA rather than an IFA that has to send the stuff to a central unit.

The money was not released into my bank until 9th April at which point I had been dragged into the 40% tax bracket because my income for this year will be higher than last years, which means of course that I have had to pay an extra amount of tax.

Whilst you received it on the 9th, what was the date it went through the payroll system?   it may have just crept in.  ie. paid 5th April but you got it via BACs on the third day after.  Its not the date you get it that matters but the date they paid it.

 I am really upset that at no point in time was I kept updated on what was happening and told that it would not clear until this tax year.

what has the adviser said about this?     

bownyboy

Exactly one month with Hargreaves Lansdown using UFPLS from requesting the forms to be posted to the money being in my wifes account. 

We're only doing one withdrawal a year, so while its a pain it takes so long, we can live with it.

moedeeb

I have pensions in drawdown with Vanguard and Nutmeg,  Nutmeg insist on a pdf form followed by a phone call with one of their Advisors this happens every year as I only take a withdrawal annually. Had the call on 23 March and still no sign of the funds in my account.  

Vanguard have an easy online process without need for any calls and I made a withdrawal request and had the cash within 10 days.

I think the difference is the way Nutmeg outsources their pension admin and the  inherent communication delays. 

dunstonh

Nutmeg insist on a pdf form followed by a phone call with one of their Advisors this happens every year as I only take a withdrawal annually. 

Nutmeg do not have advisers.  Its a non-advised service.

Steve_s1

I just received my first ever SIPP withdrawal (UFPLS) from interactive investor and it took 9 working days for the cash to arrive in my current account. They said it should be within 10 working days....I must say I am impressed with ii (so far) after moving my pension to them from Scottish Widows last year.

tilllymse

Thank you all very much for your responses.  

Having made the request for the withdrawal I received the following letters on my account.

26/3/24 - A letter saying they had received my request, also saying that withdrawals are typically within 10 working days of the request being initiated. However, this letter does not state the date the request was made.

5/4/24 - A letter confirming that they have completed my recent request.  Also saying that I have 30 calendar days to cancel this income payment?

8/4/24 - A letter giving information enclosed in the payslip for the payment dated 08/04/2024.

Well, I found this quite confusing but noted that a large amount of tax had been deducted and I was aware that this tended to happen at the beginning of a tax year so I emailed my IFA to ask what tax year my payment had been made in and he replied that the 'provider' have confirmed that it occurred within the current tax year.  He also added the following paragraph 

      'As I mentioned during our meeting, once a withdraw is submitted, we rely on the provider to process it.  In this              case they initiated the withdrawal on the 5th but didn't complete the payment until the 8th, which is the date                    reflected on your payslip'

Not really happy, I emailed my IFA back to ask what date our face to face meeting was (when instructions were given and forms signed).  I reiterated that he had said 10 days to process.  I also asked why it had taken longer and why was I not informed that in actual fact the transaction was not going to be made in the 23/24 tax year.

I received a reply from the company today, headed Pension withdrawal complaint.  Slightly surprised as at this point, as I thought I was asking questions?  They basically said they were investigating my 'complaint' and would reply within 8 weeks.

I would like to say that this is the extent of my problems with this company but sadly it is not.  I cannot say anything further at this point because I don't know how much I can write about it and I really need to print off paperwork, check phones calls and dates etc and try to assemble it into some sort of order that is comprehensible.

What I would really like to know now is, in the letter of the 5/4/24, they said that I could cancel the income payment.  Is this normal and is there a charge for doing it please?

Also, I would like a comprehensive explanation of what constitutes a 'review' please?

Of course this situation creates another problem for me in that they have effectively blocked me from making any further withdrawals for another year!

Just to answer a couple of questions that have been asked:  No, I don't make any pension contributions.  I have already retired.  It is definitely an IFA I have.  God knows, I have to pay enough for them every year.

Hope this makes sense. Thanks for any help and answers.

tilllymse

Just to clarify, the letters on my account are from the provider.  The request for the withdrawal was made 14th March and the forms were signed for it the same day.