UFPLS or FAD with Legal & General

TIALTNGO

I wonder if any members have has any experience with Legal & General around the above.

I have a DC pot with then for around £230K and looking to retire in August when 55.
I have obtained the max payable with my State Pension forecast.

I am looking to go down the UFPLS route and crystalise £16760 per year with L&G with £4190 tax free and £12570 taxable, albeit as I will have stopped working this should be tax free.

My question is has anyone done this also and got them to pay the £16760 over 12months.  After speaking to L&G today I'm a bit confused as they stated this would not be possible.

The agent implied the £16760 would be crystalised and the full tax free some would be paid and I would need to arrange the remaining £12570 to be paid monthly and this was FAD.

Hopefully the above makes sense in what I'm looking to do and appreciate any response.

LHW99

How old is the pension? Old ones often don't give all the flexibilities.

You are likely to be able to transfer to a more modern plan that does, either with L&G or elsewhere.

Dazed_and_C0nfused

TIALTNGO said:

I wonder if any members have has any experience with Legal & General around the above.

I have a DC pot with then for around £230K and looking to retire in August when 55.
I have obtained the max payable with my State Pension forecast.

I am looking to go down the UFPLS route and crystalise £16760 per year with L&G with £4190 tax free and £12570 taxable, albeit as I will have stopped working this should be tax free.

My question is has anyone done this also and got them to pay the £16760 over 12months.  After speaking to L&G today I'm a bit confused as they stated this would not be possible.

The agent implied the £16760 would be crystalised and the full tax free some would be paid and I would need to arrange the remaining £12570 to be paid monthly and this was FAD.

Hopefully the above makes sense in what I'm looking to do and appreciate any response.

I presume you realise this but it won't be tax free in year 1.

Assuming that by "looking to retire" you mean you are currently working and will stop in the summer and have taxable earnings to factor in.

TIALTNGO

Dazed_and_C0nfused said:

TIALTNGO said:

I wonder if any members have has any experience with Legal & General around the above.

I have a DC pot with then for around £230K and looking to retire in August when 55.
I have obtained the max payable with my State Pension forecast.

I am looking to go down the UFPLS route and crystalise £16760 per year with L&G with £4190 tax free and £12570 taxable, albeit as I will have stopped working this should be tax free.

My question is has anyone done this also and got them to pay the £16760 over 12months.  After speaking to L&G today I'm a bit confused as they stated this would not be possible.

The agent implied the £16760 would be crystalised and the full tax free some would be paid and I would need to arrange the remaining £12570 to be paid monthly and this was FAD.

Hopefully the above makes sense in what I'm looking to do and appreciate any response.

I presume you realise this but it won't be tax free in year 1.

Assuming that by "looking to retire" you mean you are currently working and will stop in the summer and have taxable earnings to factor in.

Yes, sorry I realise this and retiring part way through the year, so will be liable for some tax,  I might change my initial strategy for the first year.

In terms on the type of pension it is a workplace pension and classed as modern and from the members booklet has all the flexible freedoms available.

This is from the members booklet regarding UFPLS  "Take it in a series of cash lump sums. You can leave your money invested and withdraw it as cash lump sums as and when you wish. You can normally take up to 25% of your funds as tax-free cash, subject to any allowances, but the rest will be taxed as income. The money left invested has the chance to grow but it could go down in value too. If you choose this option, you may wish to spread your withdrawals over a number of years to manage the tax you pay"

Perhaps its the way I'm trying to administer a monthly payment which is causing the issue.

dunstonh

I wonder if any members have has any experience with Legal & General around the above.

L&G have a range of plans and not just one.

My question is has anyone done this also and got them to pay the £16760 over 12months.  After speaking to L&G today I'm a bit confused as they stated this would not be possible.

L&G do not support regular UFPLS on any of the plans I have come across.  (consistent with most legacy plans).

You would need a more modern plan to do that.  If you are going to transfer out of L&G, allow for 6 months, as they are obsessive with the anti-scam transfer process—possibly the worst of all the mainstream providers.

MetaPhysical

Yes, sorry I realise this and retiring part way through the year, so will be liable for some tax,  I might change my initial strategy for the first year.

Yes, consider retiring at the end of the financial year.  In my case my last work pay day will be March 2026 and maybe even Feb 2026 if it would make it cleaner even though I would dearly love to go in July when I'll be [youthful!] 58.  I'll then move into my DB pensions monthly and UFPLS from my Aviva.  I need to get my head around "emergency tax" implications of doing that.

Dazed_and_C0nfused

MetaPhysical said:

Yes, sorry I realise this and retiring part way through the year, so will be liable for some tax,  I might change my initial strategy for the first year.

Yes, consider retiring at the end of the financial year.  In my case my last work pay day will be March 2026 and maybe even Feb 2026 if it would make it cleaner even though I would dearly love to go in July when I'll be [youthful!] 58.  I'll then move into my DB pensions monthly and UFPLS from my Aviva.  I need to get my head around "emergency tax" implications of doing that.

The emergency tax code is 1257L.

So assuming your DB pension will be your main source of Inc me going forward you are quite likely to owe tax on the UFPLS payment as you will receive a months tax code allowances on the first payment.

The bigger the first UFPLS payment the more chance the higher rate tax deducted will outweigh the extra months tax code allowances and result in you paying more than is actually due.

ali_bear

Are you determined to retire at 55? That's pretty early and you won't get your full state pension for another 13 years.