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

MallyGirl

https://forums.moneysavingexpert.com/discussion/comment/82085970#Comment_82085970

I did this with just the small pots - I left the rest of my SIPP in II

ali_bear

I did it with HL. Transfer DC funds in, then separately they will carve out as many small pots of 10k you are allowed. Doing this only gets you an extra 7.5k of TFLS over the LSA but that's effectively 1.5k of income tax eventually saved (if you're going to be over the LSA).

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82085970#Comment_82085970

Are you 100% sure about that as they definitely didn't use to have such a rule in place.

A few years ago I transferred in just less than £30k to a completely new and empty HL sipp and proceeded to request 3 small pots over a few months without issue, and I know other posters have talked about doing similar things with £10k pension pots, so if true then this is a big change that I would have thought I'd have seen posted before.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82086131#Comment_82086131

You are right that I also have never seen the £100K rule ever mentioned on this forum.

However it would not totally surprise me as this service they offer must be costing them money. Especially for clients like you , who probably paid them near zero fees and caused them presumably quite a lot of admin work, informing HMRC etc . It is very good of them to subsidise this activtity, but maybe the new owners are not as keen to do this?

MallyGirl

I did my activities in the last year between October and this March so it would have to be a very recent rule change

heathrow

https://forums.moneysavingexpert.com/discussion/comment/82086156#Comment_82086156

I can't remember where I saw £100k mentioned. I also can't find anywhere on the HL website where it says they will carve out three pots - anyone got a link?

Marcon

You may have seen it suggested on previous threads on this forum, if you've done any browsing. Have a look at

https://forums.moneysavingexpert.com/discussion/6613424/new-sipp-with-hl-to-create-3x-small-pots

and there's a link to the relevant form you need to complete. Give HL a call and check if there's currently a minimum pot size needed for them to do this (bar the obvious '£30,000') - and if you'd kindly post the answer on this thread, that would clear up any confusion.

RogerPensionGuy

https://forums.moneysavingexpert.com/discussion/comment/82086108#Comment_82086108

Just for information, an extra 7.5K of TFLS is maybe a saving of 1.5K tax for 20% payers, 40% payers will save 3K and makes the hassle more worthwhile and obviously 45% tax payers gain a bit more, every little helps I guess.

sweeter_strudel

I just did the three small pots this financial year on a work pension I transferred in, worth about £40k.

Rattled through three small pot withdrawals within a month, with no mention of needing £100k.

About to do drawdown on the remainder.

Relatively simple, some paper forms, some online stuff, but always worth phoning their pension helpline people as they know their onions and will talk you through the nuts and bolts of procedures, timelines and online and paper forms.

sweeter_strudel

Should've said - all using HL