Drawdown charges

Chickereeeee

Well, HL are still charging £1125 pa for a £250K fund portfolio, compared to £300 pa by YouInvest etc.....

C

greenglide

I so wish I didn't buy my annuity 3 years ago just hope I live to a ripe old age!

But nothing three years ago forced you into purchasing an annuity.

You shouldnt believe the political spin on all tjis!

SallyG

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

"We are just waiting on the FCA, our regulator, to issue final rules clarifying what it expects firms to tell clients before they apply"
If they're regulated does that mean some sort of protection for drawdown clients?
"Income drawdown in the Vantage SIPP is arranged on a non-advisory basis."
i.e. absolutely no come-back if it all unravels?
no-go for a free swift exit:
"Hargreaves Lansdown will hit savers who attempt to withdraw their entire pension fund within 12 months of opening an drawdown account post-April with a £295+VAT penalty following a review of its pricing."
http://www.moneymarketing.co.uk/news-and-analysis/pensions/hargreaves-introduces-drawdown-exit-penalty-in-pricing-
overhaul/2018729.article

"Transferring your existing drawdown pension to the Vantage SIPP (Self Invested Personal Pension) is easy and in many cases you don't even need to sell your existing investments." ..... isn't that only if you will be investing in exactly the same funds as before?

dunstonh

brewerdave wrote: »

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

Other providers are ahead of HL. As mentioned on the other thread, do not believe the SPIN.

zagfles

dunstonh wrote: »

Other providers are ahead of HL. As mentioned on the other thread, do not believe the SPIN.

Other providers who insist on an intermediary. This thread concerns providers who don't insist on a middleman.

matty17r

greenglide wrote: »

But nothing three years ago forced you into purchasing an annuity.

You shouldnt believe the political spin on all tjis!

But greenglide I did not know the rules were going to change. I would have been better holding on to my fund but I wanted to cash it in early at 55 in order to get some of it back before I start paying tax when I get SP. I do not believe any politcal spin by the way!

kidmugsy

matty17r wrote: »

But greenglide I did not know the rules were going to change. I would have been better holding on to my fund but I wanted to cash it in early at 55

His point is that you were under no compulsion to buy an annuity. You could simply have chosen capped drawdown instead.

matty17r

kidmugsy wrote: »

His point is that you were under no compulsion to buy an annuity. You could simply have chosen capped drawdown instead.

As this was a small pot I don't think this was possible.

bmm78

matty17r wrote: »

As this was a small pot I don't think this was possible.

Fixed Term Annuities were a viable drawdown alternative for small pots.

bmm78

SallyG wrote: »

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

"We are just waiting on the FCA, our regulator, to issue final rules clarifying what it expects firms to tell clients before they apply"
If they're regulated does that mean some sort of protection for drawdown clients?
"Income drawdown in the Vantage SIPP is arranged on a non-advisory basis."
i.e. absolutely no come-back if it all unravels?

Generally there has been very little comeback on non-advised sales providing that enough information was provided to make an informed decision, and it was clear to the customer that no advice was given. There have been exceptions, but as a rule of thumb not giving advice meant limited protection and recourse if things went wrong.

There is however huge pressure on the FCA to protect consumers, and to not simply give non-advised sales the Pontius Pilate treatment.

The so-called 2nd Line of Defence is probably just the beginning, and in due course there is likely to be a much greater onus on non-advised and execution-only brokers to prove they are acting in the best interests of their customers.