Retirement Planning - Schedule regular withdrawals as combination of taxable income and tax-free cash, UFPLS (UK)

One of the changes that was brought in on 6 April 2015 was the introduction of a new authorised payment, with the name 'Uncrystallised Funds Pension Lump Sum' (UFPLS). An UFPLS payment can be taken direct from a Money Purchase arrangement in the form of a 'lump sum' – the lump sum comprises (ordinarily) a 25% tax-free element, with the remaining 75% being taxable at the member’s marginal rate of tax, as appropriate.

Where the scheme allows, individuals can receive their entire 'pot' of money purchase benefits as a one-off UFPLS payment, or can take a series of smaller UFPLS withdrawals, each of which will have a tax-free, and taxable element.

This guide relates specifically to the modelling of a regular series of UFPLS withdrawals. 

Setting-up a regular UFPLS withdrawal

To schedule a pre-determined income, payable year-on-year as a series of UFPLS receipts, - either level or increasing with inflation - one should select the relevant pension then click on the Planned Withdrawals section. The relevant settings are illustrated below, in 3 easy steps:

1. Click 'Add withdrawal'


2. Specify the desired amount, and type of withdrawal


3. Select a 'Start', and 'End' event, for when the income will commence (and terminate)

In the Timing section of the planned withdrawal, set a start and end event 



To return to 'Retirement Planning Options - Default Settings' click here <<<