New pension reforms not so good for small pots?

mgdavid

I thought one choice criteria would be pot size?
Snowman's comparison spreadsheet should help:

https://drive.google.com/file/d/0BxA6Przq6KI1NVlKMlNMNE9jR2c/edit

FWIW I'm with Charles Stanley, no issues so far.

maggy50

kidmugsy wrote: »

I thought the Tel over-egged the pudding there. Many of the pension providers who won't provide flexible drawdown turn out to be employer DC schemes. Well, of course; why on earth would they go to the expense and hassle of introducing FD when the alternative is just that members transfer out to providers who have the necessary software, or can produce it with decent economies of scale?

As for alternatives, people here often recommend Cavendish Online. We have found HL's costs for FD perfectly tolerable. If the market next year is as competitive as I'd expect, I'd say that prices are likelier to fall than to rise.

You could always hedge your bets and transfer to a Stakeholder Pension in the first instance because they aren't allowed charges for transferring out (to anyone expert - have I got this right?).
Then when the main providers have published their price lists for April '15, transfer on again to whomever you fancy.

Can I ask who is HL ?

kidmugsy

maggy50 wrote: »

Can I ask who is HL ?

Hargreaves Lansdown - see #2.

matty17r

Hi - just bumping up this thread with my latest progress. I still have my Aviva stakeholder pension and paid in all my small earning last tax year as someone suggested. I am now in a position to move it over to another provider who will allow me flexible drawdown. I have been researching the charges and telephoned Cavendish online who were extremely helpful. I have a small fund of just over £30k and it looks like HL are coming out the chepeast for flexible drawdown at 0.45 and kidsmugsy spoke highly of them so I think I may opt for this. Am I overlooking any other providers please? I will be so happy when I get this sorted out! Thank you so much once again to all the posters who have contributed to this thread.

kidmugsy

HL's charges are pretty good, I think, with one exception. If you transfer in and then drawdown the lot within a year they hit you with an extra charge. That's understandable, but worth bearing in mind. Someone said recently that if it's a quick withdrawal you're after, then the otherwise too expensive Virgin is worth looking at.

matty17r

Thanks kidmugsy for your reply. No, I am not looking to take it out in one go. I am going to make the most of my personal allowance over a few years before my state pension kicks in.