UFPLS withdrawals from a SIPP with two funds.

Roger175

Sorry, I'm busy and haven't had a chance to read all the replies, but just to say I'm with A J Bell and take my income via UFPLS (typically twice a year). I hold about 10 funds and about 25 individual share holdings. This makes no difference whatsoever, I simply make sure there is sufficient cash in the cash account before making a request for the payment. As long as the cash is there, they're not interested in what you've sold. The only minor issue I have had, is when I made one of the payment requests before the funds had cleared, but that only delayed things by a couple of days.

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/81974612#Comment_81974612

I suppose you can extend the OPs question to - if I don’t have enough cash, how does it handle the withdrawal. Or, if I want to make a transfer to cash (for future withdrawal), how does it distribute that across funds - can it apply that as a ratio based on how much of each fund I own, or do I have to specify %/£ amounts from each pot?

Roy1234

https://forums.moneysavingexpert.com/discussion/comment/81974612#Comment_81974612

Thanks, that pretty much answers it then, crossed wires in how they took my question!

Roy1234

https://forums.moneysavingexpert.com/discussion/comment/81974575#Comment_81974575

Thanks, another vote that I should be able to do what I thought I could do. The two pensions are with People's Pension and Scottish Widows, both now automatically 'lifestyled' into pre-retirement funds offering little growth. So need to move. PP's few funds don't seem the best available. SW aren't the easiest to deal with on the phone, and won't UFPLS under £5k, which is awkward re the amounts we may want to draw.

So selling them both up into cash, then buying into two separate funds at AJ Bell was my plan. The larger (untouched) fund to go on a Whole World Tracker, such as the HSBC or Vanguard ones with low fees. The smaller fund to be drawn off (as UFPLS) to be held in a more balanced fund, maybe 60% equities, that one not selected yet.

The reason for UFPLS not drawdown is to keep the option of the 25% Tax-free lump sum, not needed for now, open as an option for the future.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81974739#Comment_81974739

OK sounds like a plan.

Just one point, better for you not to sell to cash in advance . If you initiate the transfers via AJ Bell and say you want a cash transfer, then SW and PP will only sell your investments to cash towards the end of the transfer process. There should be no need to contact SW or PP, although they might contact you.

The longer you are in cash the more likely there will be some big market swing at that time. This could work out negative or positive for you, but normally downswings tend to be quicker and bigger than upswings.

Roy1234

https://forums.moneysavingexpert.com/discussion/comment/81974778#Comment_81974778

OK thanks, so leave the transfer process to do the selling, so it happens late and briefly. That is one aspect, the risk of selling on a 'bad day' that worries me a bit, but there seems no way around it. I can only hope that if the market drops, so too will the proportionate price of the new investments, moderating any loss. Once cashed up by the selling companies, have you any idea how long it takes to reach the new company to allow share purchase?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81974961#Comment_81974961

Not exactly.

The whole transfer process can take anything between 48 hours and 4 weeks ( longer if there is some hitch).

I transferred two different SW pensions to a Fidelity SIPP, and in both cases took a fortnight.

It is usually said you might be 'out of the market'/in cash for 2 to 5 days . You can not avoid it.

Rather strangely both ceding and receiving schemes, seem to not inform you when the transfer actually happens, so you need to keep checking.