Taking retirement income

There are a number of ways clients can take an income from their pension with us. They can enter into flexi-access drawdown and you have the ability to arrange automated regular crystallisations on their behalf. In addition, we support clients with existing capped drawdown arrangements as long as they remain within the income limits. Clients can also make UFPLS withdrawals and can receive small pots, ill health and serious ill health payments (subject to meeting the conditions for these payments).

Here you’ll find out how to administer UFPLS payments as well as other withdrawals, such as small pots, ill health and serious ill health payments.
 

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• UFPLS
• Small pots
• Ill health and serious ill health

Uncrystallised Fund Pension Lump Sum (UFPLS) payments are taken from Pension Savings Accounts (uncrystallised accounts). For each payment, 25% is tax free with the other 75% taxable as income. Both parts are paid all at once to your client, and no drawdown account will be set up for them.

To apply, please use the form below (there is no online process at present).

UFPLS application form

How funds are sold when raising money for payments

Where possible, we will pay your client's UFPLS payment from cash within their account. When there isn't enough cash to make the payment, we will sell investments proportionally to make up any shortfall. If you would prefer the payment to come from a specific fund or funds, you will need to sell the necessary units before you apply to take the payment. This will ensure there is enough cash within your client's account to cover the payment.

The payment is made through BACS within five working days once there is enough cash in your client's account to cover it. If we have to sell investments to make the cash available, you will need to allow time for those deals to settle.

Small pots payments can only be taken where the total value of the pension is less than £10,000. Each individual is allowed to take three pensions in full in this manner in their lifetime. For each payment, 25% will be tax free with the remaining 75% taxed at basic rate.

To apply, please use the form below (there is no online process at present).

Small pots application form

The payment is made through BACS within five working days once there is enough cash in your client's account to cover it. If we have to sell investments to make the cash available, you will need to allow time for those deals to settle.

Ill health allows for clients unable to continue in their current line of work due to medical issues to access their pension earlier than the normal minimum pension age. The minimum age clients can normally access their pension savings is currently 55, and is due to rise to 57 on 6 April 2028, unless they have a lower protected pension age.

Serious ill health allows for clients who have less than one year to live to withdraw all of their money tax free, assuming they have some Lump Sum & Death Benefit Allowance (LSDBA) remaining.

To apply, please use the forms below (there is no online process at present).

Early retirement form (ill health)

Early retirement form (serious ill health)

The payment is made through BACS within five working days once there is enough cash in your client's account to cover it. If we have to sell investments to make the cash available, you will need to allow time for those deals to settle.