25% Tax Free Lump Sum Withdrawal: Any Advice?

ali_bear

Plan is to transfer out of the existing employers scheme into a modern SIPP before taking any TFLS or income.

LHW99

ali_bear said:

Plan is to transfer out of the existing employers scheme into a modern SIPP before taking any TFLS or income.

Probably a good idea to do that, as I have heard / read of people having more difficulty transferring a crystallised pot than one that is untouched

Albermarle

pterri said:

When I spoke to Vanguard about starting drawdown they book a call in with one of their people. It’s not ‘advice’ as such, it’s to explain how it works with them and playback some of the info from pension wise. I guess it’s not compulsory but it was useful to understand the nuances of how it works with them. May be a similar thing. 

Fidelity do something similar. It is partly to cover their own backs, so  they make sure they tell you that if you spend the pot too quick it could run out. The call is recorded, so if you ever go back and say you have run out of money, as you did not understand what you were doing, then they have their backside covered.
Plus as you say the info about how it all works in practice can be useful as well.

Albermarle

WittyUserName said:

Dazed_and_C0nfused said:

WittyUserName said:

Having read up on UFPLS it’s definitely not what I want and I’m not sure I want the hassle of converting to a new product as I have another ‘more modern’ pension I can access for the tax-free lump sum. 

What do you mean by that?

Is your other 'more modern' pension large enough you will get the maximum TFLS of ~£268k from that?

Or are simply not bothered about having more tax free cash 🤔

I wish!

Sadly my other pension isn’t large enough to release the max. 

What I meant was, I don’t want to go through the hassle at this moment in time as I have another pension where I can access the funds I need for now.

I will have to address the matter at some point I know, so you could say I’m intentionally kicking the can down the road, but only by a few yards because I’m nervous that the rules might change in the next round of pension reform, whenever that might be. 

I’ll research and revisit the transfer to a product that supports the 25% tax free drawdown soon. 

Thank you 

Although it should not be the main decision driver, be aware that some Sipp providers offer cashback deals from time to time for transferring pensions to them.

ali_bear

Thinking about transferring from an uncrystalized pot. If I was to do a partial transfer from my uncrystalized workplace scheme into a SIPP to gain the maximum cashback on that transfer. Then drain that new SIPP over a number of years while leaving the remaining workplace fund untouched. Would I still have full flexibility when it comes to taking the rest of the workplace fund?

MallyGirl

it will be uncrystallised so you can do whatever it supports.