Interactive Investor

Take a one-off payment from your existing drawdown pot

You can now take a one-off income payment from your existing drawdown pot online. 


Step 1.

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'.

Step 2.

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.

Step 3.

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’.

Step 4.

Here, select the crystallised funds you wish to withdraw a one-off payment 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.

Step 5.

Select ‘Take a one-off lump sum payment’. 

Then click ‘Next’.

Step 6.

Enter the amount you would like to withdraw from the selected drawdown arrangement. You can tick the box to indicate you would like to withdraw the full value. 

Then click ‘Next’.

Step 7.

Read through the declarations and check the box to agree to them.

Then click ‘Next’.

Step 8.

The details of your withdrawal 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.

What’s next?

  • Your one-off lump sum will usually be paid within 3-10 working days if there is enough cash in your SIPP. 
  • Your payment will take longer if any investments need to be sold first.
  • If you choose to take a taxable income payment as well as your tax free lump sum and 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