Flexible Drawdown

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
17 replies 2K views
PossetjohnPossetjohn Forumite
134 Posts
Hi all,

I looking for some opinions/information regarding SIPP provider platforms and converting to flexible draw-down sometime in the next tax year.

Currently I have a SIPP and ISA with HL and have been happy with their service and ease of using their website:). However their charges are one of the most expensive of the direct providers:(
I have not yet consolidated the rest of my pensions with HL so took the opportunity to look at the costs for my situation for both the initial year of setting up a flexible drawn-down then annual costs up to age 75.

For me, it looked as if AJ Bell/youinvest was the cheapest, then Best Invest / Charles Stanley. The ongoing cost from HL was not much more expensive as they don't seem to charge an annual income payment charge? (note I have discounted Interactive Investor after reading about the problems many people are having with them).
The other provider I looked at was Trustnet Direct, who are a bit more expensive, but the platform fee of 0.25% capped at £200 also covers an ISA and Trading account! Note there is an additional £80+VAT admin fee for the SIPP. I have used the Trustnet site quite a lot for research purposes and think it is very good

Does anybody who uses any of the platforms I have mentioned, especially if you are taking draw-down have any comments info re ease of use, reliability, customer service etc.

Thanks in advance for your help
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Replies

  • LintonLinton Forumite
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    From the start of the next tax year everything changes anyway and the current drawdown regime will no longer exist. It is currently unclear as to exactly how the new rules will work in practice and also unclear what the charges will be.

    I have taken flexible drawdown from BestInvest and have arranged capped drawdown for my wife from YouInvest (run by AJ Bell). Both took less than a month to sort out. There are tedious forms to fill in and everything was handled by post. Looking back there werent any real problems, 1 month seems OK to me, and both companies have been paying out exactly as requested.

    Since you mentioned III, I have used them for my S&S ISA for the past 5 years and have no complaints.
  • zagfleszagfles Forumite
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    I don't think any of them have announced what their charges will be under the new rules. They may be the same as flexible drawdown now, but I wouldn't rely on it. Why not wait till you know what the charges will be?

    Plus if you've got a big fund you can negotiate a discount with HL particularly if you say you're leaving...I posted some links in this thread (on the first page, don't bother reading further as the later pages are mainly a flame war!)

    http://forums.moneysavingexpert.com/showthread.php?t=5120535
  • kidmugsykidmugsy Forumite
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    We've been very happy with HL but, alas, our SIPPs have been small. They are a bit pricey for large ones.
    Free the dunston one next time too.
  • gadgetmindgadgetmind Forumite
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    HL are willing to negotiate for larger pots, but I was using BestInvest for some other holdings, and they offered us a great "grandfather" deal so we could continue to use their pre-RDR rates for equites including ETFs, so we shifted everything there.

    It's good to know that the bulk of our investment returns will benefit us rather than a bunch of no/low value add middlemen.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Linton wrote: »
    From the start of the next tax year everything changes anyway and the current drawdown regime will no longer exist. It is currently unclear as to exactly how the new rules will work in practice and also unclear what the charges will be.

    I have taken flexible drawdown from BestInvest and have arranged capped drawdown for my wife from YouInvest (run by AJ Bell). Both took less than a month to sort out. There are tedious forms to fill in and everything was handled by post. Looking back there werent any real problems, 1 month seems OK to me, and both companies have been paying out exactly as requested.

    Since you mentioned III, I have used them for my S&S ISA for the past 5 years and have no complaints.

    Many thanks for your reply. I am planning to wait (probably), just wanted to get a feel for the other providers.
    Also noticed on the threads on III you had commented it had worked very well for you
  • zagfles wrote: »
    I don't think any of them have announced what their charges will be under the new rules. They may be the same as flexible drawdown now, but I wouldn't rely on it. Why not wait till you know what the charges will be?

    Plus if you've got a big fund you can negotiate a discount with HL particularly if you say you're leaving...I posted some links in this thread (on the first page, don't bother reading further as the later pages are mainly a flame war!)

    http://forums.moneysavingexpert.com/showthread.php?t=5120535

    Thanks for your reply. I had read on or two of your linked posts but note the one re snowman and spreadsheet. I will delve into that deeper tomorrow
  • gadgetmind wrote: »
    HL are willing to negotiate for larger pots, but I was using BestInvest for some other holdings, and they offered us a great "grandfather" deal so we could continue to use their pre-RDR rates for equites including ETFs, so we shifted everything there.

    It's good to know that the bulk of our investment returns will benefit us rather than a bunch of no/low value add middlemen.

    Thanks to you and zagfles for the hint about HL negotiating! When you say large pots what orders of magnitude are you talking about?
  • gadgetmindgadgetmind Forumite
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    From memory, they'd start paying attention when North of £200k, but I'd have to dig out the old thread to be sure.

    BestInvest maintained their fixed fees for those already using equities, so I did a one-off switch from tracker funds to tracker ETFs. We now have 2x SIPPs and 2x S&S ISAs with them, and are very happy.

    BTW, the personal pension providers are also very price competitive, and if you avoid their legacy funds are well worth a look, but they are likely to be stick in the muds when it comes to the new rules.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • kidmugsykidmugsy Forumite
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    One other thought, it's worth asking yourself what you want to invest in. From memory Bestinvest cover shares (for example) quoted in London. I have a notion to invest in a couple of Canadian companies that are quoted only in Toronto and Wall St. I understand that that would be possible with HL and with YouinvestAJ Bell.

    P.S. Open to correction, in case I'm out of date or plain wrong.
    Free the dunston one next time too.
  • gadgetmindgadgetmind Forumite
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    Yes, BestInvest are a trifle less flexible regards what you can hold. They don't allow direct holding of corporate bonds (ORB) either.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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