From the 'SIPP' menu in your online account, select 'Withdrawing money'.
The bank details you have given us previously will be shown. You can change these before you continue if necessary.
Then select 'Set up or amend withdrawals'.
You will then see a page with information about taking guidance from Pension Wise before withdrawing from your pension. From here you can either choose to book an appointment with Pension Wise, let us know that you’ve already had an appointment or confirm that you wish to proceed without having an appointment.
You will then see a summary of your available pension funds, including the details of funds you have already crystallised (this simply means funds you haven already moved into drawdown).
Scroll to the bottom of the page and click ‘Next’.
Here, select the crystallised funds you wish to take or amend your income from.
Then select ‘Pension Income – Set-up or amend a regular taxable income or take a one-off-income payment from your selected drawdown arrangement’ from the options that appear.
Select ‘View, amend or stop my current regular payments’.
Then click ‘Next’.
The details of your current regular income from the selected drawdown arrangement are displayed.
To begin taking, change or stop your income payments, click ‘Amend Details’.
If you would like to stop payments from the selected drawdown arrangement, click ‘Stop’.
To amend or begin your regular payments, set the regular payment amount and frequency as desired.
Then select an available payment date in the next month that the change should be effective from. Please note that only dates at least 10 days after the current date will be available to ensure enough time to process the change.
Read through the declarations and check the box to agree to them.
Then click ‘Next’.
The details of your amended payments are displayed and a new illustration, based on your updated payment amount, will be generated. This can be read by clicking the ‘View illustration’ link.
You may go back to edit your changes by clicking ‘Back’.
Once you are happy with your changes, tick the box to confirm you have read the illustration.
Click ‘Submit’ to complete your request.
- Your regular income payments will start, change or stop from the date you have selected.
- If this is your first income withdrawal from your SIPP, you may be charged an emergency tax rate if we have not received confirmation of your tax code from HMRC.
The emergency tax code assumes that you will carry on receiving the same amount each month even if the money you are taking is a one-off withdrawal. On an emergency tax code, you will also only receive 1/12th of your tax-free personal allowance. This may mean you pay more tax than is actually due. You can reclaim emergency tax on pensions by contacting HMRC directly.
How can Pension Wise help?
If you have a defined contribution pension scheme and are 50 or over, then you can access free, impartial guidance on your pension options by booking a face to face or telephone appointment with Pension Wise, a service from MoneyHelper.
If you are under 50, you can still access free, impartial help and information about your pensions from MoneyHelper.