Sipp providers

okydoky

jamesd wrote: »

Why not do it sooner and start to withdraw at the GAD limited rate, even if you don't need the income yet? Pension income probably beats drawing on savings. Say after the GA calculation changes from 100% to 120% in March or April?

So GAD is increasing? Still, I do not want to pay tax unnecessarily so will limit drawdown to new personal allowance in April.
Is this also an argument for taking TFC and reinvesting into S and S ISA's?

Gatser

DavidLaGuardia wrote: »

Only charges you could see would have seemed reasonable. You would have had a selection of funds at retail costs with many of them paying Skandia agreed fees out of this in addtion to you account fee. A decent range of low cost methods of investing at discounted institutional prices or via ETFs and many low cost passive funds, where the real bucks are saved, would have been impossible through your choice.

You picked the best choice out of a range of horse and carts and were not aware of the cars.

Hasn't that all changed now with the RDR exercise?

Surely Horses & Carts are still better than the Dogs?

My opinion is unchanged until I can see specific examples of where I am overpaying... if indeed I am.

(Some) Ignorance is bliss maybe....

jamesd

Yes, GAD is increasing from 100% to 120% for all GAD limit calculations from 26 March 2013.

The main argument for putting the TFC into S&S ISA investments is to ensure that the capital is available for unlimited drawing as needed, to smooth out variations in your GAD calculation or to boost your income level until the state pensions start.

SippTechie

jamesd wrote: »

Yes, GAD is increasing from 100% to 120% for all GAD limit calculations from 26 March 2013.

The main argument for putting the TFC into S&S ISA investments is to ensure that the capital is available for unlimited drawing as needed, to smooth out variations in your GAD calculation or to boost your income level until the state pensions start.

Minor correction to the above.

GAD is increasing from 100% to 120% for all new pension years from (provisionally) 26 March 2013.

There is no need to wait for a new GAD calculation, the increase should just be applied to the existing 100% limit from the start of the next pension year.

Any providers waiting for the next three yearly review to increase, or requiring the client to request an earlier review to obtain the increase, aren't applying the rules in line with the legislation.

jamesd

Thanks. Now, lets see how many providers want to charge a new GAD calculation fee before providing the 120% level at the start of new pension years...

mania112

GAD Calculation should be free (considering how straightforward it is and there are calculators online)

grey_gym_sock

jamesd wrote: »

Thanks. Now, lets see how many providers want to charge a new GAD calculation fee before providing the 120% level at the start of new pension years...

presumably they'll also put their fees up by 20%, and explain this is to comply with the new rules