Pension Providers Supporting The "Small Pots" (£10k) rule

heathrow

Does anyone know which providers will allow a payment under the small pots rule for a SIPP?

I can see both AJ Bell and HL do - but is there anyone else who does?

Marcon

Most of the major DC providers. Be aware that it's not just a case of checking providers - you'll need to check the terms of your particular contract.

mrklaw

is there anything stopping you from partially transferring £9k to a supporting provider from a much larger SIPP/workplace pension and taking it as a ‘small pot’?

heathrow

Nope - and that is part of the plan. Looking to hold three small pots in private pensions.

The workplace pension can be taken as a small pot too and doesn't count towards the three providing the last transfer out was three or more years ago.

(I'm working and plan to retire in just over four years)

Albermarle

Fidelity offer small pot withdrawals, although I think there is something in their small print about transferring money in and withdrawing it again quickly. Not necessarily relating to small pots, just a general rule .

Vanguard do not offer small pot facility ( when I last checked), and I would guess the new kids on the block, like Freetrade, Investengine etc probably do not.

heathrow

https://forums.moneysavingexpert.com/discussion/comment/82085852#Comment_82085852

Vanguard has nothing listed - so appears not to.

Pension Bee does not.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82085573#Comment_82085573

There are regular posts on here saying that HL will accept a transfer in and then 'carve out' 3 separate pots of £10K each, which you can then take under the small pots regime. I've not done it myself, so the usual 'check with HL' caveat.

For anyone unfamiliar with the 'small pot' rules, there's a good clear explanation here: https://www.litrg.org.uk/pensions/pension-withdrawals/small-pensions

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/82085571#Comment_82085571

that is what I did - twice, with the 3rd achieved by depositing the salary I had earned before my retirement (Sal sac while working so there was just enough to achieve another nearly £10k once the tax relief landed). I left it in cash with HL, got a small bonus for transferring and paid no fees.

Marcon

(I'm working and plan to retire in just over four years)

Just a thought - if you're planning to retire in just over 4 years, do you need to use the small pots regime at all? Its advantages are that it doesn't trigger the Money Purchase Annual Allowance; and taking 25% tax free cash from a small pot counts as 0% of the Lump Sum Allowance. If you won't need to worry about the MPAA, or exceeding the LSA, it would seem to add a needless complication when you could just take out cash of any amount at time(s) of your choosing, if the provider offers flexible drawdown.

heathrow

https://forums.moneysavingexpert.com/discussion/comment/82085889#Comment_82085889

HL only do this if you have a pension of more than £100k with them, which I am not keen to do.

heathrow

https://forums.moneysavingexpert.com/discussion/comment/82085950#Comment_82085950

I will exceed the LSA.