Taking an UFPLS lump sum payment

Step 1.

From the 'SIPP' menu in your online account, select '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 ‘UFPLS & Small Pots - Take a one off Lump Sum that is usually 25% tax-free and 75% taxable income’.

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.

The minimum lump sum that you can request is £1,000.

Step 7.

Taking a lump sum payment will count towards your Lump Sum Allowance (LSA) and Lump sum and Death Benefit Allowance (LSDBA). Please select whether you have taken any tax-free lump sums from a pension on or after 6 April 2024.

Taking benefits from a pension (withdrawing money) before 6 April 2024 will have counted towards your Lifetime Allowance (LTA). Please select whether you took any benefits from a pension (withdrew money) between 6 April 2006 and 5 April 2024.

Then select whether you took any benefits from a pension (withdrew money) before 6 April 2006. 

Step 8.

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

If you have any Lifetime Allowance 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’.