Are there any restrictions on taking a flexible lump sum (flexi-access drawdown or UFPLS) with The People’s Pension?

There are a few things you need to consider when taking a flexible lump sum with B&CE.

 

When you use your pension savings for flexi-access drawdown with us:

  • you have to take your maximum tax-free lump sum – normally 25% of your pension pot
  • you’ll need to designate the remainder of your pension pot to be used for flexi-access drawdown, not just part of it
  • you need to have a minimum pension pot of £10,000 (or £2,000 if you’ve already designated with us before)
  • each withdrawal you take must be a minimum of £2,000 – or the rest of the savings in your pension pot if less
  • you can only take 1 withdrawal per tax month
  • we may charge if you take more than 4 separate withdrawals in 1 tax year (so, your tax-free lump sum along with 3 withdrawals)
  • if you’re invested in multiple funds, every time you make a withdrawal, we’ll reduce your holding in each fund proportionately.

 

When you use your savings for a lump sum (UFPLS) with us: 

  • you need to have a minimum pension pot of £10,000 when you take your first lump sum (or £2,000 if you’ve already taken a UFPLS with us before)
  • each lump sum you take must be a minimum of £2,000 (or the rest of your savings in your pension pot if lower)
  • you can only take 1 lump sum per tax month
  • we may charge if you take more than 4 separate lump sums in 1 tax year
  • if you’re invested in multiple funds, every time you take a payment, we’ll reduce your holding in each fund proportionately.

 

 

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