Uncrystallised funds pension lump sum

Uncrystallised Fund Pension Lump Sum (UFPLS)

SJP Uncrystallised funds pension lump sum

You can withdraw lump sums directly from your un-accessed defined contribution pension. This is known as Uncrystallised Fund Pension Lump Sum (UFPLS), and is an alternative to drawdown.

Although the name sounds complicated, it means you can extract a lump sum of money from your pension, without moving into pension drawdown, if you wish to do so.

There could be various reasons for doing this, perhaps if you required an amount of money for a one off purchase for example. 

Twenty five percent (25%) of the lump sum you withdraw will not be subject to tax, while the remainder will be taxable according to your applicable rate of income tax.

It is worth noting that you may find ad-hoc partial withdrawals subject to emergency tax, as HMRC can treat each lump sum as part of your annual ‘income’, and any overpayment in tax will need to be reclaimed. 

Drawing a lump sum directly from your pension does offer flexibility as part of your retirement planning. However you should take financial advice from your St. James’s Place Partner if you are considering this option, so that any tax implications are understood, as well as discussions around which pension investment funds to withdraw from and how this might affect your portfolio.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.