SIPP

How do I request an income payment from my SIPP?

To request an income payment from your SIPP, please visit the ‘Manage my SIPP’ area in your account and click on ‘Benefits’ or send us a secure message or an email from your registered email address. If you have requested a one-off payment your funds will be paid to you within 5 working days.

How do I start taking benefits from my SIPP?

You will need to complete a SIPP benefit form and return this to us. When we have received your benefit form we will calculate your available tax free lump sum and maximum annual pension. We will aim to pay your chosen lump sum within 5-10 working days.

When will I receive the tax reclaim for the contributions paid into my SIPP?

If we receive your SIPP contribution on or before the 5th of the month, we will reclaim the basic rate tax element from HMRC and this will be credited to your account on the 25th of the following month.

For example if a contribution is received on the 1 April the tax reclaim will be added to your account by the 25 May. However if the contribution was received on the 6 April then the tax reclaim will be credited on 25 June.

What charges will I pay for taking my pension?

The charges for taking your pension are set out in our SIPP charges and rates.

To help you understand how these will apply, here are some examples of different scenarios, please note that all of these charges are subject to VAT:

  1. You take your maximum tax free lump sum but leave the rest of your pension pot in your SIPP for a later time.

You will pay the £50 annual charge when you take your lump sum and then £50 each year until you choose to take income.

Do I have to decide where to invest my money straight away?

No you can hold cash in your account until you are ready to invest.

But remember, over time, investment returns are likely to beat the returns you can get from holding cash – although this is not guaranteed - so bear this in mind if you intend to hold cash for a long period of time. For more details on our cash rates, visit our charges and rates page.

How can I apply for an AJ Bell Youinvest account?

You can apply for an AJ Bell Youinvest account online but you must read and understand the terms and conditions of the account before you complete an application. There are also a number of risks and key features you should read and understand too. They will help you make a decision if the account is right for you.

Can I transfer my SIPP to another pension provider?

Yes, your SIPP can be transferred to another UK registered pension scheme or qualifying recognised overseas pension scheme (QROPS). Please call our customer services team on 0845 54 32 600 who will explain the process.

If you have already started taking benefits from your SIPP, all of that part of the SIPP must be transferred to the new pension scheme. If you have parts of your SIPP that have not had any benefits taken from them, you can choose how much of that part of your SIPP to transfer.

How does the lifetime allowance affect my SIPP?

The Government has set a limit on the amount that you can have in all forms of pension you hold, which for 2014/15 is £1.25m.

Every time you take benefits from your pension, you ‘crystallise’ that proportion, and the relevant portion of your lifetime allowance is used up. If you reach age 75 without securing an income via an annuity you will also have your benefits tested against the lifetime allowance. If you have had more in total than the £1.25m limit, you will face the lifetime allowance charge. Please remember that tax limits can change in the future.