Flexible withdrawals

Withdrawals are more convenient for your clients and much easier for you to set up and manage on our new platform.

Choose an income or regular withdrawal payment date from the 1st to the 28th of the month.
Instruct and manage your clients' income online.
Enjoy more ways to manage distributions.

You can find further information on instructing withdrawals, including payment timescales in our money out leaflet.

Flexible income or regular withdrawal dates

Your clients have full flexibility to choose a date from the 1^st to the 28^th of the month to be paid their regular withdrawals or pension income.

You can amend your clients' payment dates quickly and easily on the new platform no later than ten days before the next scheduled payment date.
Alternatively, your clients can change when they receive their money themselves, on our online Customer Centre.

Your clients will continue to receive their money on the same dates as before, unless you make a change.

More frequent natural income payments

If your clients receive natural income, they're likely to see an increased number of payments into their bank account. This is because our new system pays them their distributions direct, as soon as they're received from the fund manager.This is a new feature of our system, where previously natural income payments were rolled up to a minimum of twenty five pounds and paid out at a frequency specified by your client.

Instruct and manage your clients' income online

Managing your clients' income and withdrawals online can make it three to five days quicker for your clients to receive their money.

Instruct one off withdrawals online of up to £50,000.
Set up and manage regular withdrawals and income completely online.
Crystallise assets and manage pension income online.
View details of any ‘natural income’ that has been paid to your clients. They’re likely to receive this more frequently (see above).

Clients who are signed up to our online Customer Centre can request withdrawals online, up to a value of £50,000, for ISA and Collective Investment Account (CIA). Requests for withdrawals from CRA and CIB are not available to your clients online. More information on the functionality available to your clients via the online Customer Centre can be found here.

Important

If you have previously requested for regular withdrawals to be funded by selling units from your client’s ‘largest fund’, please be aware that on our new technology platform these payments will be funded by deducting units proportionately across assets held within the account or bond.

More options for managing distributions

Your clients have a new, third option for receiving distributions:

Reinvest into the originating asset or a model portfolio in line with the model managers preference.
Receive the distribution as cash directly to their bank account for ISA and CIA.
NEW! Retain the distribution as cash – can be used to fund advice fees, Old Mutual Wealth charges, income, or regular withdrawals.

Following migration, if your clients hold model portfolios, all distributions by default will pay to product cash. If your clients hold loose assets the distribution will be reinvested in the originating asset. Each client account can then be reconfigured in one of the three ways outlined above.

Controlling how your clients’ regular withdrawals and income are funded

ISA and CIA:

Assets will be sold proportionately (including cash and exchange traded investments) or you can choose specific assets to sell, including cash.
Where a specific asset is selected, once the asset is depleted our system will default back to deducting from cash before then defaulting to proportional deductions (not including exchange traded investments), ensuring regular withdrawals are always paid.

CIB

Assets will be sold proportionately (including cash) or you can choose specific assets to sell.
Where a specific asset is selected, once the asset is depleted our system will deduct units from transactional cash, then proportionately in order to fund the payment. It is not possible to select cash specifically to fund income.

CRA

Assets will be sold proportionately (including cash and exchange traded investments) or you can choose specific assets to sell, including cash.
If you wish to fund income using specific assets, then you will need to ensure these assets are sufficient to cover your clients’ income payments. If the selected assets are insufficient, this could prevent the income payment being made.
For tax efficient regular income options (TRIO), where a specific asset is selected, once the asset is depleted our system will default back to deducting proportional deductions (including cash but not including exchange traded investments), ensuring regular withdrawals are always paid.
In addition, you will be able to specify specific assets for crystallisation and to fund tax free cash, where necessary.

More information on the income options available for the CRA can be found on our CRA webpage.

Useful Hub articles

Advisers who are interested in flexible withdrawals and the CRA also found the following articles useful.

Collective Retirement Account	View CRA article
Product comparison of the CRA before and after the enhancements	View product enhancements
The new underlying structure of the CRA	View training video