Withdrawal from SIPP.

tilllymse

Why would I keep being told that it should be typically completed within 10 days if there are issues with the platform/provider?

enthusiasticsaver

tilllymse said:

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

My husband requested a SIPP withdrawal on 7th March and it was in our bank account 18th March. He requested another on 8 April for this current tax year and we are expecting to receive it early next week so 10 days. Like you he took the majority in 23/24 tax year to avoid being dragged into the 40% tax bracket.

We use an IFA and Fidelity platform. Our IFA told us exactly when the money would be paid. I am not surprised you are annoyed. I don’t know how you cancel an income payment. 

tilllymse

I also have another small pension which is paid out monthly, circa £200.  I have received a payment today for £167+.  Would I be right in thinking this mess has affected that pension too and I am now wondering if it will affect my state pension?

tilllymse

I have been looking on the platform again and have found some Purchase and Sales dates.  There have been no 'sett' (settlement?) dates on Purchases after 13/3/24 and there appear to be no transactions on the Sales dates between sett date of 11/3/24 and a trade date of 27/3/24.  Is this the information I am looking for?, and it does beg the question, why would there be transactions at the end of the month that many people would be withdrawing to beat the tax year?

dunstonh

tilllymse said:

I have been looking on the platform again and have found some Purchase and Sales dates.  There have been no 'sett' (settlement?) dates on Purchases after 13/3/24 and there appear to be no transactions on the Sales dates between sett date of 11/3/24 and a trade date of 27/3/24.  Is this the information I am looking for?, 

Settlements wouldn't necessarily appear on the transactions list, but the sales/purchases would.  Settlement is 2 or 3 working days after the trade date (the trade date would appear).    Those purchases on 13th March may have held up the process.  But it would have still settled in time for the 18th March cut off.   

Was there sufficient cash already in pension prior to the drawdown request?  Or were sales on funds required to raise the cash?  If sales were required,what date did they take place?

Is there are section that shows documents that have been issued to you and those uploaded by the adviser?   Most platforms have one (again, I don't use Parmenion so don't know what they show).      Look in that section and see what the date is that the adviser uploaded the form to Parmenion.     This will help you identify if the adviser let you down or Parmenion.

and it does beg the question, why would there be transactions at the end of the month that many people would be withdrawing to beat the tax year?

there are ways around it.   For example, maintaining a small cash float to cover charges prevents forced trades.  But some platforms don't point it out or encourage it.    And it may take a rare occurrence like yours for the adviser to become aware.   For those who want the month 12 payroll, its worth diarising for 1st March.  Get the sales in after that and then key the withdrawals after 6th March, which gives plenty of time but still makes sure it falls in month 12.    The later you leave it, the riskier it is that unexpected events occur that could hold things up.      

I also have another small pension which is paid out monthly, circa £200.  I have received a payment today for £167+.  Would I be right in thinking this mess has affected that pension too and I am now wondering if it will affect my state pension?

Its more income at higher rate tax but apart from that, no.

Why would I keep being told that it should be typically completed within 10 days if there are issues with the platform/provider?

Emphasis on the word "typically".   As I said, this software concurrent or consecutive processing issue is relatively new and it requires a string of events for it to happen.  It may not even be your issue.

tilllymse

Thank you so much duns.  I can't answer or even understand some of what you have said and need to look further into it. 

I cannot find any documents on my Parmenion platform that suggest when the request was made, other than the  document dated 26/3/24 (which I have previously mentioned) that said hat my request had been received, but not giving an actual request date, unless it is the date of the letter? 

I have previously cited two of these documents to my IFA when asking why my payment had been delayed?  One dated 5/4/24 confirming my request had been completed and one dated 8/4/24 which was a payslip. 

This was his response:  'The correspondence you received regarding your Parmenion account is from Parmenion themselves and not from me, However, I understand it might be a bit confusing as it may appear as though I have sent it'.

On the bottom of the document dated 8/4/24 it gave a telephone no. and email address for 'Parmenion'.  I decided to ring 'Parmenion' to ask when the request was submitted and also to ask about a reversal payment.  Remembering of course that my own IFA had said these letters were from Parmenion.

Upon ringing the no. it was answered by a person who said they were called * and asking how could they help me today.  I was shocked as the name was the same as my IFA and it sounded like him too.  I said hello and there was a long pause when nothing further was said, I said hello twice more after which the call was disconnected?  It was a deliberate disconnection.

My head is spinning now.  No attempt was made to call me back and I don't know whether to call them back now either. The no. was different from that which I have listed as my IFA, but I am pretty positive it was my IFA.

As I said, I have had other issues with this company regarding an earlier attempt at a very small (tax free) withdrawal that didn't happen.  On that occasion I had given specific instructions in the February, which also included instructions for a further larger (tax free) withdrawal in the following new tax year  I was also given poor financial advice re: taxes.

It was flagged and raised as a complaint when I met my 'new' IFA on 11th March this year and discussed it with him.  It was very quickly shot down by the company who invited me to take it to the Ombudsman? which I am thinking of doing.
 
However, I desperately need to speak with somebody who knows what they are talking about and who can give me another perspective on the situation, (I am not asking for advice).  I need help!  As I have no way of knowing whether my comments are being read, I really don't want to put all my information on this platform at the moment.  Is there anybody I can approach (who is honest).

Thank you for reading.

Sarahspangles

This does sound fishy, I understand why you’re worried. Have you called Parmenion and checked if the number is valid?

LHW99

Would I be right in thinking this mess has affected that pension too and I am now wondering if it will affect my state pension?

I don't think it would affect the monthly payments, because although SP is taxable, it is paid gross.

It could mean that it puts your total 2024-35 income up (if the transaction is not reversed), meaning you have to pay additional tax at the end of this tax year.

tilllymse

LHW99 said:

I don't think it would affect the monthly payments, because although SP is taxable, it is paid gross.

It could mean that it puts your total 2024-35 income up (if the transaction is not reversed), meaning you have to pay additional tax at the end of this tax year.

Ok, but I am confused why my small pension has paid less this month? 

Sarahspangles

tilllymse said:

LHW99 said:

I don't think it would affect the monthly payments, because although SP is taxable, it is paid gross.

It could mean that it puts your total 2024-35 income up (if the transaction is not reversed), meaning you have to pay additional tax at the end of this tax year.

Ok, but I am confused why my small pension has paid less this month? 

Have you checked your HMRC tax account to see if there has been a change to your tax code?