Drawdown charges

SnowMan

Zagfles, version 3 uploaded

https://drive.google.com/file/d/0BxA6Przq6KI1NVlKMlNMNE9jR2c/edit?usp=sharing

You can change the yellow inputs via the dropdown boxes once you've downloaded, to choose options for cash only etc (in accordance with the options in the table on the second page and using those formulae). Done it quickly so may be some errors.

I've added in x-o. They seem to have pretty much no main charges (unless you empty the pot within 5 years). There is a £50 charge for a recalculation at other than a GAD review date but as we are assuming reviews at GAD dates that doesn't really apply.

Still a work in progress. Some of the charges still need clarifying.

zagfles

SnowMan wrote: »

Zagfles, version 3 uploaded

https://drive.google.com/file/d/0BxA6Przq6KI1NVlKMlNMNE9jR2c/edit?usp=sharing

You can change the yellow inputs via the dropdown boxes once you've downloaded, to choose options for cash only etc (in accordance with the options in the table on the second page and using those formulae). Done it quickly so may be some errors.

I've added in x-o. They seem to have pretty much no main charges (unless you empty the pot within 5 years). There is a £50 charge for a recalculation at other than a GAD review date but as we are assuming reviews at GAD dates that doesn't really apply.

Still a work in progress. Some of the charges still need clarifying.

Excellent :T Though I fear it may need radically amending soon with the budget changes - no capped in a year's time and I'm sure the charges for flexible will rise to pay for the "free" advice the govt have promised...

SnowMan

zagfles wrote: »

Excellent :T Though I fear it may need radically amending soon with the budget changes - no capped in a year's time and I'm sure the charges for flexible will rise to pay for the "free" advice the govt have promised...

Yes, it is hard to know how these charges will all change post April 2015.

So I don't think we can really sensibly progress this at the moment.

Mirador

Just come across this great thread, but is there any newer chart to use, as this is almost a year old, or have things stayed the same?
Thanks

mgdavid

thanks Mirador :T

I was looking for this link the other day and failed to locate it!
Think it's still relevant, maybe zag will be along to confirm?

zagfles

I think charges have mostly stayed the same but I've only checked a couple...I don't think any have announced their charges for flexi-access drawdown or UFPLS yet.

SnowMan

Looks like Hargreaves Lansdown have adjusted their drawdown charges to apply from April. Essentially most of their drawdown charges appear to have been removed (ignoring those remaining in capped drawdown where the £90 GAD charges still apply), except for a £354 first year whole fund removal charge mentioned below, and the £30 account closure charge.

https://www.hl.co.uk/pensions/income-drawdown/new

Looks like a move from HL to make money from their existing high platform charge rather than through explicit drawdown charges.

The £354 (£295 + VAT) charge mentioned (which was their existing flexible drawdown set up charge) if the account is emptied within 12 months of opening a drawdown account, on the surface looks reasonable to me, at least for investors transferring money to HL's drawdown arrangement.

The £30 SIPP account closure charge presumably still applies even if the £295 + VAT charge is avoided.

So the new HL drawdown charges looks very reasonable. But those with large funds using drawdown, will still be faced with high platform charges, which is likely to make other providers with explicit drawdown charges but lower platform charges cheaper in many cases.

Anyway interesting move.

It may soon be time to bring the drawdown spreadsheet out of hibernation if Zag is on for that.

zagfles

Excellent news - and quite surprising - I was expecting charges to go up with all this "guidance guarantee" and FCA nannying with a list of questions providers have to ask etc. HL have set the bar - we'll see what the others do.

matty17r

I am watching this thread with great interest and thank all you experts for your tips. I have a form for a SIPP from HL waiting in my in tray but will wait and see what other companies come up with. I so wish I didn't buy my annuity 3 years ago just hope I live to a ripe old age!

brewerdave

I ,too, got the email from HL yesterday -interesting times ahead if other providers do a similar thing:)