Drawdown charges

SallyG

I'm looking at an initial direct sales income drawdown/unsecured pension illustration. I'm 64 - the illustration assumes I will buy an annuity at age 75 with what's left of the pension pot.
[I know I no longer need to do that and I currently think it's unlikely even if any leftover USP pension pot will be taxed at 55% when I die.]
The illustration shows what's likely to happen if I invest £85,000 of my Protected Rights pension in a SW fund called SW Dynamic Solution annual charges "Years 1+ 1.669%" [sharp intake of breath?]
and take the maximum income allowed.
I haven't yet decided to go ahead with drawdown nor agreed any fund to invest in yet - this fund was chosen by SW for the drawdown illustration.
The illustration shows that given "middle rate growth of 7%"
[ie SW Dynamic Solution middle rate growth projection]
I could take pre-tax £6120 annually for the first 5 years
[ I'm assuming that's 120% GAD/pre April 6th 2011 rate but it's not noted as such]
then pre-tax £6000 [I'm assuming that's 100% GAD] annually until I reach 75 and still have £58,000 left in the fund at age 75.
I haven't yet decided to go ahead nor agreed any fund to invest in yet - this fund was chosen by SW for the drawdown illustration.
I'm assuming this is their "best buy" for drawdown.
SW say that if I invest in SW Dynamic Solution the total deductions by age 75/over the next eleven years will probably amount to nearly £23,000 on my initial payment of £85,000 in this "long term capital growth "fund
I've looked at SW Dynamic Solution -
http://www.digitallook.com/cgi-bin/digital/security.cgi?username=dldl&ac=&id=139216
its fund objective is "long term capital growth"
Top 10 Holdings

Name % Net Assets SWIP M-M International Equity 20.0% SWIP M-M UK Equity Focus 16.0% SWIP M-M UK Equity Growth 15.0% SWIP M-M UK Equity Income 15.0% SWIP High Yield Bond 13.0% Russell Emerging Markets 4.0% SWIP M-M Global Real Estate 3.0% SWIP Property Trust 3.0% SWIP Corporate Bond Plus 2.5% JPM UK Smaller Companies 2.0%
Is 7% growth likely from these investments?
Could I lose the lot?

dunstonh

a SW fund called SW Dynamic Solution annual charges "Years 1+ 1.669%" [sharp intake of breath?]

That is a pretty naff fund. As SW sales reps are not authorised to portfolio plan and document it that you pick the fund, what has made you choose that fund? (i know you said they have put it on the illustration but what has been discussed for them to do that?)
When you consider that a 0.4% bog standard sector average performing balanced managed fund has consistently out performed it, there is really little going for it.

Based on your other posts, the use of the SW sales force to go into a relatively poor product (its not bad for large investments but not good for smaller ones under £100k) with a relatively poor fund at a high cost for a "transactional" investment, I really fail to see the attraction.