Once you reach the age of 55 you can start taking an income from your SIPP, or you can choose to keep your money invested and continue to contribute to your pension pot. If you need to take an income or need access to the money in your pension, you can choose any, or a combination, of the below options.
If you don’t need a secure, regular income then you can continue to manage your pension fund and draw a variable income (within certain limits) directly from the SIPP. You will continue to make all investment decisions and the value of your SIPP will rise and fall depending on the performance of your investments.
Charges will apply to your SIPP where you designate some or all of your SIPP to drawdown.
You can take a one-off payment from your pension or a series of lump sums, keeping the remainder of your pension invested. The first 25% is tax-free, with the remainder subject to tax at your usual rate of income tax.
An annuity converts your pension fund into a regular, secure income payable for the rest of your life. Choosing an annuity is an important decision to get right as, once you’ve signed up, it can’t be stopped or changed.
For more information about your options, read our Benefits Guide.
We have temporarily paused all inward transfers of stock and cash, and transfers between accounts.
Like all businesses we have to work differently amid concerns regarding Covid-19 and prioritise the safety of our staff and customers. As a result we are working with reduced resource which is impacting this service.
We hope to return this service as quickly as possible, and will update this page when the service is available.
You can transfer your pension to us in 3 easy steps.
1. Complete our application pack (which includes a transfer form).
2. We’ll text you with any updates until your transfer is completed.
3. Transfers take around 6 - 8 weeks.
Download our transfer form if you already have a SIPP
If you’d like to switch your pension to the Halifax there are a number of things you’ll need to consider before starting the transfer.
You may lose out on potential pension benefits with your current provider if you choose to transfer out.
Costs vary between pension providers so it’s important to familiarise yourself with these differences. Additional charges apply for other services.
Transfers usually take around 6 – 8 weeks however timescales are largely dependent on how quickly your current provider responds to our requests. If we have any issues with the transfer we’ll be in touch so make sure we’ve got your up-to-date contact details.
We charge £60 per transferring pension up to a maximum of £300. Your existing provider may charge you transfer or closure fees so please keep this in mind when you're transferring.
As pension transfers can take several weeks to complete, there may be a period where you are unable to deal while the transfer is pending.
You should also check whether your current provider only allows transfers in the form of cash as you may suffer losses as a result of buying back the investments once the transfer has completed.
More detail on how you can benefit from tax relief.
If you pay tax at a higher rate than basic tax rate you can claim any further tax relief to which you are entitled via self-assessment. If you are a Scottish or Welsh taxpayer and you pay tax at a rate higher than basic rate, you will be entitled to claim further tax relief at that higher rate. If you pay tax at lower than the basic rate of tax you will still be entitled to receive tax relief at the basic rate.
The Self-Invested Personal Pension (SIPP) will pay interest on any cash balance of £1 or above held in the account. Interest is accrued daily and paid gross annually in March.
Please note that the interest rate payable on our Self-Invested Personal Pension (SIPP) follows the Bank of England Base Rate. We will amend our interest rate as soon as is practically possible following a change in the base rate - the current rates that are applicable are shown below.
|Balance||AER||Interest Rate (Gross)||Interest Rate (Net)|
|£1 and above||0.1%||0.1%||N/A|
Find all our SIPP forms here and what you’ll need them for.
You will need to complete this form to contribute either a lump sum or start a regular contribution. If this is your first contribution then you will also need to complete a Direct Debit Instruction.
Our benefits process has been designed to give you the necessary information and time needed to make an informed choice when taking benefits from your SIPP. We have created an information page and a guide to help you.
Carry forward may allow you to contribute more than the annual allowance without incurring tax charges. Through carry forward, contributions that exceed the annual allowance in one tax year can use up any unused annual allowance from the previous three tax years, using the earliest tax year first.
If you want to contribute a lump sum or start a regular contribution, you’ll need to complete a Direct Debit Instruction form.
One of the benefits offered by your pension is the ability for the funds held in your SIPP to be passed on to others after your death. Your expression of wishes helps us to decide who you would like to pass those funds on to after your death.
By transferring benefits into your SIPP from another pension provider, you may give up the right to guarantees over the kind of benefits, the amount you will receive and the level of increases that will be applied to your pension in future. Your existing pension provider may apply a penalty, or other reduction in the value of your benefits, if it is transferred. There is no guarantee that you will be able to match the benefits that you give up by transferring into a SIPP.
If you are in any doubt about the benefit of transferring, we recommend that you take advice from a suitably qualified, professional adviser before arranging the transfer.
Your benefits will be affected by the level of contributions paid to your SIPP now and in the future. You may benefit less from investment growth if you delay the payment of contributions to your SIPP.
If you have a smaller SIPP, it’s important to be aware that administration fees may result in costs being disproportionate to the value of your SIPP.
Most experts will tell you not to keep all your eggs in one basket, this is good advice as it’ll help you to reduce your risk. You'll be able to deal in a range of investments each of which carries a different type and level of risk.
All investments involve a degree of risk. The value of the investments in your SIPP can fall as well as rise and you may not get back the full amount that you invested.
It's extremely important to fully research stocks using sites such as our Shares Centre which gives trading news and recent trade values/amounts. Whilst research is important, do remember that past performance is no guarantee of future results.
If you start to take benefits earlier than you originally intended, the level of the benefits you can take may be lower than expected and may not meet your needs in retirement.
Your SIPP may be subject to additional tax charges at the point you withdraw funds if your pension is valued at more than the Lifetime Allowance (the maximum amount you can build up in a SIPP without facing tax charges). If you take income withdrawals this may erode the capital value of your fund. If investment returns are poor and a high level of income is taken this will result in your SIPP falling in value and could result in a lower income than anticipated in the future.
If you choose an annuity to provide your benefits, the level of income you receive is based upon the average life expectancy of someone of your age. When fixing annuity rates, providers take into account the fact that some people will die earlier than expected, effectively subsidising those who live longer. Income withdrawals paid from the SIPP do not have the benefit of such a subsidy.
There is no guarantee that annuity rates will improve in the future. If you choose to purchase an annuity, the level of pension you receive when you purchase the annuity may be less or greater than the pension previously being paid under income withdrawal and/or the annuity you could have purchased previously.
Having considered these risks, if you have any doubts about the suitability of the Halifax Share Dealing SIPP or you need advice, you must seek advice from a suitably qualified professional adviser.
For more information about SIPPs, please read the Key Features Guide.