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Crystallisation on ii
Comments
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Probably the confusion with what other posters have said is that these providers improve/change their systems from time to time.
Until a couple of years ago, if you wanted to start taking tax free cash from a Fidelity SIPP, you had to arrange a phone discussion with them first to go through all the warnings about 'are you sure you understand what you are doing' ' if you take too much out your pension might run out sooner than you think ' etc etc. Now you can do it all on line.
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But the question is, can I do it online on my 55th birthday?
If there is still a manual process or phone calls or form filling in order to enable the online functionality then it doesn’t help in my specific situation.0 -
I just reviewed my own ii crystallisation documents, for which the request was submitted at a relatively quiet time of year.
On calendar Day 1 (my application date) I had a confirmation message stating that, assuming no further queries on my application, ii expected to confirm the transaction in no more than ten working days. It actually took six calendar days for my "pack" to appear as an ii secure message, *however* the stated date of the Relevant Benefit Crystallisation Event in that pack was actually Day 2(!) Both Day 1 and Day 2 were weekdays. I was paid the lump sum on (calendar) Day 6, the day of the pack appearance.
So, to the OP, it's my view that you might be sailing close to the wind hoping for your one week turn around in late March or early April 2028 to be guaranteed, given the stated ten day aim by ii. Was I lucky? I have no idea....
It helps a little that 5 April 2028 falls on a Wednesday, however I can see why you haven't and may not get a cast iron guarantee to your satisfaction, even if the system fully "accepts" your inputs on your 55th birthday.
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That’s great thanks. Note that I’m not hoping for a 1 week turnaround, that’s not the question. It doesn’t matter how long it takes to get the money. The important part is “Relevant Benefit Crystallisation Event in that pack was actually Day 2”. That’s what I need. Also, a previous poster said they were able to submit on their 55th birthday.
Based on the info in the thread and what ii said on the phone I think this will work. I can submit on my 55th birthday and a BCE will be recorded.
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The government recently launched a consultation on this very subject which should address the OP's problem.
As someone who also worked in Finance IT I would not want to commit to how exactly how some specific functionality will work in over a year's time.
What amazes me is that the law change didn't address this problem in the first place because it's clearly causing angst.
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I can't help with your specific query, but can only add that my annual drawdown applications with ii have been fully online and processed efficiently.
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The law and guidance is clear. 6 April 2028 is a cliff edge with no taper. HMRC have also clarified that as long as BCE occurs before that date then pension access can continue.
“Where a member was aged 55 or 56 on 5 April 2028 and had already taken steps to access their pension benefits, such as designating funds for drawdown, applying those funds towards the purchase of an annuity, or becoming entitled to a scheme pension, those benefits can continue to be paid on or after 6 April 2028 as authorised payments.”
The only question I’m asking the platforms is about how their own platform currently works. I’m not asking for commitment to a timescale. I’m not asking for how the platform will work in the future. It’s a very basic IT question: “If a customer logs in on their 55th birthday is the crystallisation function available?”. I could definitely answer such a question about every IT system I’ve developed.The consultation is only about the continuity of payments that straddle the 6 April cut-over. Its not relevant to my question about the online journey to request crystallisation.
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I expect the industry will raise your specific concerns as there's likely to be a rush of people taking action in a short space of time which may become unmanageable for them.
I don't think any platform provider will give you an answer that is specific enough satisfy you so far in advance, particularly given the pending consultation.
It may be best for you to move to II (if they're the best platform for you) and then press them on the matter once the government's approach is finalised closer to the time.
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Yes I think I’ll move to ii now (my current provider will drag out the transfer for at least 6 months). Based on the answers in this thread and the answer given by ii on the phone, the crystallisation function will be available on my 55th birthday.
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The only question I’m asking the platforms is about how their own platform currently works. I’m not asking for commitment to a timescale. I’m not asking for how the platform will work in the future. It’s a very basic IT question: “If a customer logs in on their 55th birthday is the crystallisation function available?”. I could definitely answer such a question about every IT system I’ve developed.
I think you need to stop thinking about the IT systems and concentrate on their internal practices. All crystallisation requests are going to have a manual element. There's no point being able to submit an online request if all that does is put your request at the end of a queue that will be processed when there is time to do so - which isn't going to be soon at the busiest time of the year.
Just as an example, my wife crystallised her AJ Bell SIPP in two tranches. In each case the recorded BCE date was the day she submitted the request. But this year they had a deadline of 9th March for submitting a PCLS request and having it processed before the tax-year end. What would the BCE date be for a request submitted on March 10th? I don't know and whoever answers the phone probably doesn't either. Maybe it would be the 10th if everything was straightforward, maybe it would be when they got answers to necessary questions that they wouldn't even ask until April 6th because the staff who would normally do so have been reallocated to year end tasks.
You need to try and get a definitive answer about when the BCE date is recorded. But I suspect they won't be able to give you one because they can't know they have a valid request until they start processing it.
Maybe you would be better off ignoring the large DIY outfits and see if there are more bespoke options who might be able to pre-process your application so that it can be actioned on your birthday. As long as there aren't expensive lock-ins then you could transfer to the platform of your choosing once the SIPP is in drawdown.
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