Interactive Investor

Taking an UFPLS lump sum payment

You can now take an UFPLS lump sum from your pension online.

  • The process should take around 30 minutes. It usually takes no more than 10 working days after this to receive your lump sum payment.

Step-by-step

Step 1.

From the 'SIPP' menu in your online account, select 'Taking benefits / withdrawing money'.

If you haven't done so already, you will need to add a bank account before you can continue.

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. Scroll to the bottom of the page and click ‘Next’.

Step 4.

Select your uncrystallised fund (this simply means funds you haven't moved into drawdown yet).

Take time to read the six documents under ‘Taking your pension benefits’.

Doing this will allow you to proceed to the next step.

Step 5.

Tick to confirm you have read the documents and select ‘Take a one-off lump sum payment’.

Step 6.

Choose the amount you want to take as an UFPLS lump sum. Select ‘All of my uncrystallised fund’ or enter the amount you wish to take.

Step 7.

Taking a lump sum payment will count towards your lifetime allowance. Please select whether you have taken any benefits (withdrawn money) from a pension on or after 6 April 2006 under Lifetime Allowance used to date

Then select whether you took any benefits from a pension before 6 April 2006

Step 8.

Then confirm whether you have any form of Lifetime Allowance protection.

If you have any LTA protection, we will need a copy of any protection certificates before we can set up your benefits.

  • Please send us a secure message from your online account and attach the document(s).
  • Or you can post the documents to: Pensions Team, interactive investor, 2nd floor, One Embankment, Neville Street, Leeds, LS1 4DW.

Step 9.

We will then ask you to review your illustration of benefits.

Click 'View key feature illustration' to see a breakdown of your drawdown arrangements.

Step 10.

You will then be asked to complete a pension benefits questionnaire. Your answers will flag the important risks you should consider before taking benefits.

Step 11.

Check your benefit request summary and make sure it is accurate.

Once you have read through the declaration, click ‘Submit this benefit request’.

What’s next?

  • It usually takes no more than 10 working days to set up your benefits.
  • 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