Defering SP simple question.

xylophone

Have you tried approaching Hargreaves Lansdown to see what they offer?

http://www.hl.co.uk/pensions/drawdown/charges-and-interest-rates

ABN

Hargreaves Lansdown sent me a illustration pack a little while ago.

From that it appeared that there would be at least a 0.45% annual charge for simply holding my monies and setting up a “direct debit” to take the monthly drawdown. Since I would be drawing down over a few years would soon add up.

HOWEVER.

I am very risk adverse and plan to hold the monies as cash and only reinvest after a crash should one happen.

Phoned them today to clarify the charges.

It seems there would be
0% charge for transferring the monies from Friends Life.
0% management charges for holding the monies
0% for the drawdown

So all free to hold my monies and pay a regular drawdown.

Can’t believe it. I’m sure I must have missed something. They are not a charity so where do they get their income from?

So unless I have missed something will most likely go with them.

kangoora

Well, they pay piddling interest on cash deposits so they will be making circa 1-2% interest on the money you have deposited with them

Cash held within the Vantage SIPP and SIPP (Drawdown)

Account Balance Gross % for this tier only† AER % for this tier only†
£100,000 + 0.20 0.20
£25,000 - £99,999.99 0.10 0.10
£5,000 - £24,999.99 0.05 0.05
£0 - £4,999.99 0.05 0.05

jamesd

ABN wrote: »

They are not a charity so where do they get their income from?

Interest rate margin. Last year's annual report mentioned that they were getting 0.8% margin on cash held in Vantage., a substantial drop from previous years. I don't know what it was in the most recent report, haven't looked.