Issues taking a DC small pot pension lump sum.
Joey_Soap
Posts: 410 Forumite
Hello all, I won't name the SIPP provider just yet but I have A £10K DC pension pot that I want to exercise my right to draw down as a single small pot lump sum.
The SIPP provider says "our SIPP team do not allow this". Needless to say, I checked this very fact with them before investing in a SIPP with them.
I am on the verge of making a formal complaint against the SIPP provider since I do not understand how they can unilaterally decide to deny me this right to access my money in a legal and above board manner.
Obviously, this process will delay my accessing the money which is undesirable but it seems I have no option open other than go through the formal complaints process.
I will update the thread as the situation unfolds and later I will probably name the SIPP provider.
The SIPP provider says "our SIPP team do not allow this". Needless to say, I checked this very fact with them before investing in a SIPP with them.
I am on the verge of making a formal complaint against the SIPP provider since I do not understand how they can unilaterally decide to deny me this right to access my money in a legal and above board manner.
Obviously, this process will delay my accessing the money which is undesirable but it seems I have no option open other than go through the formal complaints process.
I will update the thread as the situation unfolds and later I will probably name the SIPP provider.
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Comments
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Did you have it in writing from them, or just in a phone call with an operative? You may have more dificulties if only the latter.0
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Sounds very strange. Perhaps you are not using a mainstream SIPP provider and/or there is something unsusual about your investments and/or there is more to this than the bare statement you have given and/or there is something unusual about you - are you 55 or over? Are you insisting on using the "small pot" route? If so there is no point with a SIPP, you can drawdown a DC pension anyway. More information would help.0
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Thanks we have both, the problem with these people often is you get a different story depending on who you talk to each time you call. If there is no resolution today a complaint will be made since I do not believe a companies in house admin or incompetence should trump me legally accessing my money in the manner I choose.Did you have it in writing from them, or just in a phone call with an operative? You may have more dificulties if only the latter.0 -
Did you have it in writing from them, or just in a phone call with an operative? You may have more dificulties if only the latter.
Yes, they are mainstream.Sounds very strange. Perhaps you are not using a mainstream SIPP provider and/or there is something unsusual about your investments and/or there is more to this than the bare statement you have given and/or there is something unusual about you - are you 55 or over? Are you insisting on using the "small pot" route? If so there is no point with a SIPP, you can drawdown a DC pension anyway. More information would help.
No nothing unusual the money (£ 8k) was paid in in March, now I want to draw it out.
There is no investment as such, cash sits in the SIPP account.
I want to use the small pot route, using draw down prevents me putting more than £4k a year into a SIPP in future years.
I am 57.
It seems to be an simply admin issue at the SIPP provider "we do not process trivial/small pot withdrawals".
Watch this space later for an update as it unfolds.0 -
Yes, they are mainstream.
No nothing unusual the money (£ 8k) was paid in in March, now I want to draw it out.
There is no investment as such, cash sits in the SIPP account.
I want to use the small pot route, using draw down prevents me putting more than £4k a year into a SIPP in future years.
I am 57.
It seems to be an simply admin issue at the SIPP provider "we do not process trivial/small pot withdrawals".
Watch this space later for an update as it unfolds.
Ah thanks, all is now clear. You could always transfer from the SIPP to a restricted Personal Pension, but perhaps its a matter of principle.0 -
Thank you for your opinion, feel free to not read any further. I will name and shame or name and praise when appropriate thank you. Good bye.
Get off your high horse....
There's every chance your pot is now over the £10,000 'small pot' threshold if the funds have been invested for a couple of months, which is why your SIPP provider can't do as you are requesting.0 -
Hello all, I won't name the SIPP provider just yet but I have A £10K DC pension pot that I want to exercise my right to draw down as a single small pot lump sum.
When you say £10k do you mean under 10k or over 10k.
It has to be £10k or under to use the small pots rule.No nothing unusual the money (£ 8k) was paid in in March, now I want to draw it out.
Was that £8k gross or £8k net?
If 8k net then tax relief would take it to £10,000 and returns on the investment (or interest if in cash) would be taking it above £10k. So, small pots rule would not be available to you.
Some providers do have the functionality to split a pot in pay it in phases but its not common (ie. 30k could be paid as 3x10k) Its a fluke in their software rather than something they planned and not many do it but it is possible. I assume you researched this before you chose your provider.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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