Very quick first withdrawal from II at age 55

gambleruk

I have heard and read over the years that once you turn 55 that your first pension withdrawal takes a while to sort, I turned 55 last week and thought I would try and see if I could squeeze my first withdrawal into this tax year, so to my surprise it has appeared in my bank account this afternoon (20% tax been taken off even though no earnings this yearso will need to claim that back).
Now I did do my research and made sure I had sold some shares and turned them into cash to try and make things move along quicker plus a couple of emails to II to try and make sure I would not make any silly mistakes but I am very happy with their service, no phone calls or extra forms to fill in, everything done online following a simple tutorial.
Hope this helps anyone else who thinks they may be leaving it to late to at least try, still got a week and half to spare

michaels

gambleruk said:

I have heard and read over the years that once you turn 55 that your first pension withdrawal takes a while to sort, I turned 55 last week and thought I would try and see if I could squeeze my first withdrawal into this tax year, so to my surprise it has appeared in my bank account this afternoon (20% tax been taken off even though no earnings this yearso will need to claim that back).
Now I did do my research and made sure I had sold some shares and turned them into cash to try and make things move along quicker plus a couple of emails to II to try and make sure I would not make any silly mistakes but I am very happy with their service, no phone calls or extra forms to fill in, everything done online following a simple tutorial.
Hope this helps anyone else who thinks they may be leaving it to late to at least try, still got a week and half to spare

Can you draw down a TFLS only converting some or all the remaining pot to taxable?

gambleruk

I never looked that closely to be honest, with not earning and being bothered about MPAA I just thought I would try and withdraw £10000 early to see what would happen. I presume they will send some documentation at some stage to read through.

michaels

Thanks.  I need to draw down TFLS only in order to maximise the kids student loan eligibility.....

fistfulofsteel

That's very reassuring thank you. I recently moved my SIPP to II in the hope of an easier withdrawal process when I reach retirement.

Will you need to claim back the tax manually or is that something HMRC does automatically at the end of the tax year?

MallyGirl

michaels said:

gambleruk said:

I have heard and read over the years that once you turn 55 that your first pension withdrawal takes a while to sort, I turned 55 last week and thought I would try and see if I could squeeze my first withdrawal into this tax year, so to my surprise it has appeared in my bank account this afternoon (20% tax been taken off even though no earnings this yearso will need to claim that back).
Now I did do my research and made sure I had sold some shares and turned them into cash to try and make things move along quicker plus a couple of emails to II to try and make sure I would not make any silly mistakes but I am very happy with their service, no phone calls or extra forms to fill in, everything done online following a simple tutorial.
Hope this helps anyone else who thinks they may be leaving it to late to at least try, still got a week and half to spare

Can you draw down a TFLS only converting some or all the remaining pot to taxable?

My OH drew down just his TFLS and left the rest crystallised- there were online questions to answer but it was pretty painless and the money arrived in maybe 4 days

Dazed_and_C0nfused

fistfulofsteel said:

That's very reassuring thank you. I recently moved my SIPP to II in the hope of an easier withdrawal process when I reach retirement.

Will you need to claim back the tax manually or is that something HMRC does automatically at the end of the tax year?

Assuming you don't complete a Self Assessment return for some reason any overpaid tax will be automatically refunded.

But you can make a repayment claim earlier if you don't want to wait.

https://www.gov.uk/tax-overpayments-and-underpayments

ex-pat_scot

i've downloaded the TFLS from ii - really painless.
I've not yet taken any of the remainder, as I don't want yet to crystallise MPAA, or take any income before next tax year.
(I recently "retired" from my high-paying employment, and consulting through a LtdCo. I'm not taking any income from the LtdCo (yet) owing to my high marginal tax band that has arisen from employment this tax year).

Once the new tax year clicks over, then I'll need to have a plan about the withdrawal strategy between basic salary from LtdCo, dividend income, pension income.

LHW99

ex-pat_scot said:

i've downloaded the TFLS from ii - really painless.
I've not yet taken any of the remainder, as I don't want yet to crystallise MPAA, or take any income before next tax year.
(I recently "retired" from my high-paying employment, and consulting through a LtdCo. I'm not taking any income from the LtdCo (yet) owing to my high marginal tax band that has arisen from employment this tax year).

Once the new tax year clicks over, then I'll need to have a plan about the withdrawal strategy between basic salary from LtdCo, dividend income, pension income.

If the Ltd Co has profit it can always pay into a SIPP for you, and reduce any corporation tax due.

TimeToEatCake

I just completed a transfer to II today from a workplace scheme with historically poor customer service.  One of the reasons for the transfer was to have an efficient drawdown process (which I expect to start next tax year) so am delighted to read this feedback!  Thanks for sharing.

MetaPhysical

Question for you regarding II and TFLS and UFPLS.  If this is a thread hijack I'll start another thread.
So as we all know we all get £268k max TFLS allowance.

On the II platform can you pull off say 100k as a TFLS and then utilise your remaining allowance of 168k for UFPLS withdrawals?

So 268k - 100k = 168K of allowance remaining in the pension for TFLS and 100k in my bank.

Use that 168k remaining allowance across UFPLS withdrawals over the next number of years??  So I get that 100k TFLS in my bank.  Cool.  Two months later I want to withdraw £20k.  Can I use UFPLS so that I only pay tax on the 15k and that the 5K is tax free (and then of course my remaining allowance moves to 168-5 = 163k )?????

Aviva do not allow this from what I can gather.  If you want the TFLS at the beginning you have to use drawdown.  I don't want to do that.