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OverviewPension withdrawals and account closing
Here you will find more information about how to take tax-free cash and drawdown for your clients from the Fidelity Pension (all of this can be set up and managed online).
We also cover UFPLS and other pension withdrawals here, such as Small Pots and early retirement through ill health or serious ill health.
UFPLS
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.
Small pots
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.
Ill health and serious ill health
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 you can normally access your pension savings is currently 55, and is due to rise to 57 on 6 April 2028, unless you 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.