Can I move cash from my pension to my cash management account?

Q: Can I move cash from my pension to my cash management account?

A: Thanks for the question. It’s one our client services team gets from time to time, so it’s definitely worth covering.

Your Cash Management Account (CMA) is designed to sit outside of product accounts like Self-Invested Personal Pensions (SIPPs), Stocks and Shares ISAs and General Investment Accounts (GIAs) (it’s not available for joint accounts). You can use it to pay fees, hold uninvested cash or move money between your Fidelity accounts - but not to receive pension withdrawals.

So, can you move cash from your pension to your CMA? Not currently. Our SIPP withdrawal process only supports payments to a verified UK bank account.

You can withdraw money from your SIPP once you’re over 55 (57 from 2028). At that point, up to 25% of your pension pot is usually tax free. Anything more is subject to income tax at your marginal rate (your highest rate of income tax).

If you’ve already withdrawn funds from your SIPP and they’ve landed in your bank account, you can then move that money into your CMA manually. But there’s no direct route from your SIPP to your CMA.

• You can read more about withdrawing money from your SIPP here

The Government’s Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.moneyhelper.org.uk or over the telephone on 0800 138 3944.

Fidelity’s Retirement Service also has a team of specialists who can provide you with free guidance to help you with your decisions. They can also provide advice and help you select products though this will have a charge.

• Read: What are the implications of auto-sales from a SIPP?
• Watch: Are you ready for the 100-year life?
• Read: How quickly will UK pension ages rise?

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.