SIPP withdrawal

RoysV

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

Storcko14

That doesn't sound correct.  Normally (I'm not a Vanguard customer mind so they might differ) drawdown is taken from cash so it's up to you to sell down whatever you want first.

DeLaSole

Hi RoysV

My mum is in the process of taking an UFPLS withdrawal and received this from Vanguard:

"Option 1 ) Flexible Income Drawdown (if you looking to take your tax-free cash payment ONLY with the optional selection of a regular monthly income withdrawal to start following the payment of Tax-Free cash. – please be aware if you have selected this option, we will sell down the required funds on your behalf, proportionately within your portfolio.

You will also be required to select your own investment choices for the funds that will remain in your Vanguard pension following the payment of tax-free cash.

Option 2) Single Cash Lump Sum (UFPLS) – If you are looking to take a combination of Tax-Free Cash and taxable Income as one lump sum from your pension. – please be aware if you have selected this option, you will be required to sell down the required sum in your account before we can arrange payment to you"

So perhaps option 1 matches what you are doing and being told.

Best wishes.

Easyjet77

RoysV said:

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

You have either totally misunderstood the information you were given...or you have been told completely wrong information.
  Whenever I make a withdrawal from vanguard, either from pension account or drawdown account, I select which funds , ETFs whatever I sell to my cash account. I then withdraw from cash. Straightforward, neither my spouse nor I have ever had a problem. Speak to the pensions dept again and be clear and concise with questions.

RoysV

Easyjet77 said:

RoysV said:

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

You have either totally misunderstood the information you were given...or you have been told completely wrong information.
  Whenever I make a withdrawal from vanguard, either from pension account or drawdown account, I select which funds , ETFs whatever I sell to my cash account. I then withdraw from cash. Straightforward, neither my spouse nor I have ever had a problem. Speak to the pensions dept again and be clear and concise with questions.

Have you taken anything from your pre retirement account recently? I've spoken to them twice and been told the same thing, one asked their manager to confirm that I had been told the correct information.
They also said they'd had loads of complaints about it so I'm guessing it's something they've just started to implement?

Easyjet77

RoysV said:

Easyjet77 said:

RoysV said:

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

You have either totally misunderstood the information you were given...or you have been told completely wrong information.
  Whenever I make a withdrawal from vanguard, either from pension account or drawdown account, I select which funds , ETFs whatever I sell to my cash account. I then withdraw from cash. Straightforward, neither my spouse nor I have ever had a problem. Speak to the pensions dept again and be clear and concise with questions.

Have you taken anything from your pre retirement account recently? I've spoken to them twice and been told the same thing, one asked their manager to confirm that I had been told the correct information.
They also said they'd had loads of complaints about it so I'm guessing it's something they've just started to implement?

Latest withdrawals 2025 were from drawdown account. The last withdrawal from pension account was last year 2024. Both ac out withdrawals proceeded as I described.
     If that's a new rule, it doesn't appear logical or sensible.i will be making another withdrawal next month ,april, so I will contact them asap for update.

RoysV

Spoke to Vanguard again, explained what I'd been told previously. The lad did a few Umm's and Ah's then put me on hold and came back and said that the easiest way is to sell down to cash or tell them on the call which fund you want to sell down and they would do it for me.
So exactly the way I'd done it last year, I'm 100% certain I hadn't misheard or misunderstood what I'd been told on the previous calls, so I've no idea what went wrong. Also thinking about it why would they tell me they'd had loads of complaints about it if nothing had changed ??
Anyway hopefully it's all sorted  

ian16527

RoysV 

I have just had a similar issue which I think is a flaw in their system or information provided when you request a transfer to the drawdown account.

Vanguard give you 3 options about what you want to do with the funds once transferred: 
1. Use the same funds as per the pre retirement account
2. Use their pathways
3. Pick your own. - which I did - the STMMF as I hold a bit in this fund to provide 3 years of drawdown cash

But there is no mention of which funds to provide the income to be transferred. If you have not enough cash they will sell pro rata form all your existing funds. 

Then if you have selected anything other than cash for your funds to be held in the drawdown account (which you have to select option 3 above then pick cash 100%) they will then sell the funds from pre retirement, and pop it into your drawdown account as cash, then rebuy back these funds in the drawdown account with a few days in between. 
I selected to keep my funds in the STMMF, so they then bought these funds, so in all 2 transactions, losing £200 on the way through. I was only transferring £7650 so not a big loss.

The strange thing is that the in-between transactions then are deleted from your transactions list.

I complained by telephone but they said they followed my instructions and cant transfer in specie from pre retirement to drawdown accounts which I find very strange.

I am now going to put a formal complaint as the instructions and wording do not warn of this potential loss situation.

 

ian16527

Easyjet77 said:

RoysV said:

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

You have either totally misunderstood the information you were given...or you have been told completely wrong information.
  Whenever I make a withdrawal from vanguard, either from pension account or drawdown account, I select which funds , ETFs whatever I sell to my cash account. I then withdraw from cash. Straightforward, neither my spouse nor I have ever had a problem. Speak to the pensions dept again and be clear and concise with questions.

Your process is correct as you have to sell to cash prior to making the request for the amount you want to transfer, but online it does not say this(Or I cannot see where it does).

If you do not pre sell your funds to cash before making the request they will sell pro rata. 

dunroving

RoysV said:

Has anyone done a withdrawal from Vanguard recently?   
Last year when I did mine I was able to take my money from any fund that I had in my pre retirement account, this year they have told me the money has to be taken proportionally across all the funds held.
When I questioned them they said it had always been the case, even though they did it last year and after a bit of twisting by me said they would do it this last time!
In my pre retirement account I have about 10% STMM which I had planned was going to be about 3 years drawdown, and the rest in equity funds. So the way they would do it only 10% would come from the STMM and the rest from my equity funds.
I also asked if I sold down the STMM to cash before the withdrawal was processed would it come from the cash part and they said no.
So unless I'm being dense, very probably, the only way around it would be to transfer all my equity funds to either the STMM or cash before any future withdrawals and take the amount I need then transfer back to where I want it?
Someone tell me I'm missing something

I'm with Vanguard and have a drawdown SIPP account (having already taken my 25% TFLS). When I request a withdrawal, it asks me to denote which funds I want to sell and how much (either as a %, or by value)


Having read other answers, edited to add that I did not have to do this in two separate transactions (a Sell and "transfer/withdrawal" transaction). I clicked on the withdraw option and it asked me which funds I wanted to sell. It then sold the funds and the amount then showed as cash, and then it transferred the amount from cash to my bank account. Or at least it will do ... they have said that, "Withdrawals from the Pension Drawdown account typically take around 5-10 business days to complete."