Recommendation for SIPP drawdown providers..

Ciprico

I'll soon be setting up my HL sipp for drawdown.

From reading their blurb it seems you have to make a request for every payment.

Are there major platforms that can be set up to pay a regular amount every month, once set up, rather like a salary...?

coyrls

If you are going down the UFPLS route, I think this is a common requirement for consumer platforms.  II classify UFPLS as a lump sum withdrawal.  If you take the PCLS separately and then set up drawdown on the crystallised funds, that can be set up as a monthly withdrawal from II.  When this has been discussed in the past, it appears that it is common to be able to set up monthly UFPLS withdrawals from IFA platforms but not from consumer platforms.

ColdIron

With HL you have two ways of accessing your cash

1. UFPLS: This cannot be automated (e.g. monthly) and would require an instruction each time. Most would take an ad-hoc lump sum or perhaps annually if going this route
   
2. Flexi-access drawdown: This can be setup to pay monthly, quarterly, half-yearly, or annually. If you want regular payments (exactly like a salary, PAYE, P60 etc) this is the option you should use. Once setup it will run automatically until you change your instruction. You can take the PCLS at the time you crystallise your SIPP (and not after)
   

zagfles

coyrls said:

If you are going down the UFPLS route, I think this is a common requirement for consumer platforms.  II classify UFPLS as a lump sum withdrawal.  If you take the PCLS separately and then set up drawdown on the crystallised funds, that can be set up as a monthly withdrawal from II.  When this has been discussed in the past, it appears that it is common to be able to set up monthly UFPLS withdrawals from IFA platforms but not from consumer platforms.

Same with HL, you can set up regular monthly drawdown from the crystallised pot, but not regular UFPLS. If that's what you want you could crystallise annually taking a year's TFLS up front and then monthly income, it's much the same, except you get a year's TFLS up front instead of with each monthly payment. 

Workplace pension providers usually offer the same options as "IFA" platforms but with the additional complication of having to transfer to a separate account, I don't think they tend to allow monthly UFPLS direct from the same account you've used for saving. Whereas HL and probably II do, just not automated. 

dunstonh

Are there major platforms that can be set up to pay a regular amount every month, once set up, rather like a salary...?

Regular UFPLS is mostly only available on intermediary platforms (pretty much all of them offer it).   It isn't as widespread on DIY platforms although I believe a few do now offer it.

However, its not a big deal for most people that control their money well.  A single payment out (or two a year with the second one in month 12 of the payroll cycle) will work just as well by putting the money in a savings account and doing a monthly transfer from that until you replenish the savings account the following year.

All platforms offer regular drawdown.  Hence we I believe you must be referring to UFPLS.

Ciprico

Thank you for the comments, I was hoping to withdraw £16,760 pa, so £1396 pcm, to use tax free allowance, and maximise my income

..but taking £12k as taxable (£1k monthly) income and £4 as tfls each year would not be the end of the world.

Are there any other reasons for staying with or moving from HL as I start some sort of drawdown...?

ColdIron

Ciprico said:

..but taking £12k as taxable (£1k monthly) income and £4 as tfls each year would not be the end of the world.

Did you mean £4,000?

What you say would work but if you wanted to maximise your Personal Allowance so would this:

Crystallise £16,760. Take £4,190 PCLS up front, put it in a savings account and access it as needed. That leaves 12,570 in the drawdown account, then take £1,047.50 monthly. Rinse and repeat next year

squirrelpie

zagfles said:

Same with HL, you can set up regular monthly drawdown from the crystallised pot, but not regular UFPLS. If that's what you want you could crystallise annually taking a year's TFLS up front and then monthly income, it's much the same, except you get a year's TFLS up front instead of with each monthly payment.
 

I did that for a while. Put the TFLS in a savings account and then used it to supplement the monthly payments each time. Less hassle than monthly UFPLS, but more hassle than ideal.

tacpot12

AJ Bell offer regular UFPLS with no need to contact them each month. I’ve been paid that way for last five years and only have to contact them when I want to increase the amount I’m drawing down. 

NoMore

tacpot12 said:

AJ Bell offer regular UFPLS with no need to contact them each month. I’ve been paid that way for last five years and only have to contact them when I want to increase the amount I’m drawing down. 

What’s the practicality of that ? Do they automatically sell down your investments monthly to generate the cash and if they do how do they decide in which proportions to sell ? Or do you still have to make sure there is enough cash available monthly but don’t have to contact aj bell about the payout ?