Best provider for drawdown?

gallygirl

I currently have pension funds with HL, Friends Life and Best Invest. Am 55 in August (:eek:) and think I want to access at least some asap - even if just to stick in S&S ISA. I'm struggling to find a Best Buy or similar table - any suggestions for best providers? Rough plan is to go into drawdown from at least 1/2 of my funds, will probably consolidate into 2 x 50k funds.

Thanks.

dunstonh

I'm struggling to find a Best Buy or similar table - any suggestions for best providers?

That is a regulated activity. Plus there is no one best provider.

What drawdown methods are you using, what investments, what other investment wrappers do you have? What investment strategy? How much? Do you want pre funding or not? these are some of things to consider when picking provider.

kidmugsy

look at the monevator blog, or the telegraph's finance pages

zagfles

gallygirl wrote: »

I currently have pension funds with HL, Friends Life and Best Invest. Am 55 in August (:eek:) and think I want to access at least some asap - even if just to stick in S&S ISA. I'm struggling to find a Best Buy or similar table - any suggestions for best providers? Rough plan is to go into drawdown from at least 1/2 of my funds, will probably consolidate into 2 x 50k funds.

Thanks.

You're already invested in pensions, HL and BI do drawdown, you don't need a separate product. Don't know about FL.

HL don't charge any extra for drawdown, it looks like BI do in some situations, but the charges are likely to be low compared to the ongoing charges you're already paying.

Might be worth a chat with Pension Wise who were set up provide guidance on exactly this. https://www.pensionwise.gov.uk

gallygirl

dunstonh wrote: »

That is a regulated activity. Plus there is no one best provider.

What drawdown methods are you using, what investments, what other investment wrappers do you have? What investment strategy? How much? Do you want pre funding or not? these are some of things to consider when picking provider.

Thanks Dunston, wasn't aware it was regulated.

I'm planning on taking a 25% lump sum and leaving the rest invested at present as I don't need regular additional income (although fear of future changes may alter this!). I do have some specific funds, around 20%, in Europe and Japan. Am selling some index funds which will give around 35k cash, the rest is in various low cost index funds and around 20k in Vanguard 40% fund. (I realise I should have moved to cash earlier but hadn't decided to take any until recent drop had started. Luckily all have now recovered and increased.) Will be moving more to Vanguard 40% (or similar) over time - I was a bit of a risk taker in the past - paid off nicely in Japan, not so in Africa , since reading Tim Hale's book I've gone for index funds and need to keep the risk lower. Planning on holding around 25% cash plus another year's tax allowance in cash.

As an aside, any opinion on Vanguard's short term investment grade bond index?

I don't have an S&S ISA as spare money went to pension and BTL's (BTL's provide a good income hence not needing regular pension income). Have some cash in P2P and also a small amount in cash savings. Will probably divide any 'spare' lump sum and any additional drawings between an S&S ISA, P2P and cash savings.

Not sure what you mean by prefunding - do you mean getting a guaranteed income a la annuity style? Answer to that is no.

gallygirl

zagfles wrote: »

You're already invested in pensions, HL and BI do drawdown, you don't need a separate product. Don't know about FL.

HL don't charge any extra for drawdown, it looks like BI do in some situations, but the charges are likely to be low compared to the ongoing charges you're already paying.

Might be worth a chat with Pension Wise who were set up provide guidance on exactly this. https://www.pensionwise.gov.uk

Thanks for this, I will speak to Pension Wise, will do my own research as far as possible as well. Am wary of seeing a financial adviser - not had good experiences to date and the last one was well into his 60's and working as he couldn't afford to retire - didn't fill me with confidence!

gallygirl

kidmugsy wrote: »

look at the monevator blog, or the telegraph's finance pages

Will do, thanks.

gallygirl

Is it normal to not be able to hold cash in a pension? I wanted to sell my two funds held in Friends Life and transfer as cash to another povider but they've just told me that is not possible?

Moot point anyway as their website is out of action till Thursday so I couldn't sell anyway :mad:. How can a website need a whole week's maintenance - it says it's down from 10th to 17th. Appalling customer service as usual :mad:.

dunstonh

Is it normal to not be able to hold cash in a pension?

For a personal pension or stakeholder pension then there is not normally a cash account. They tend to have a deposit fund. Some SIPPs operate a cash account.

I wanted to sell my two funds held in Friends Life and transfer as cash to another povider but they've just told me that is not possible?

All transfers of personal pensions are done as cash. They are converted to cash once they receive your transfer discharge forms. However, if you want to move to a cash fund in the meantime, then look to see if there is a deposit fund on offer.

Moot point anyway as their website is out of action till Thursday so I couldn't sell anyway . How can a website need a whole week's maintenance - it says it's down from 10th to 17th. Appalling customer service as usual .

10th to the 17th is nothing. I have been waiting months for them to sort out a problem with my online access. However, do remember that FL are not geared for online access. Their products come from before that time.

gallygirl

Thanks Dunston, very helpful as always. My other accounts are SIPPs so it didn't occur to me this would be different.

I actually find their website quite good re funds info - if I've been able to log on that is!!!!

Put a comment on their Facebook page and they've replied already so will contact them directly.

zagfles

gallygirl wrote: »

Is it normal to not be able to hold cash in a pension? I wanted to sell my two funds held in Friends Life and transfer as cash to another povider but they've just told me that is not possible?

Moot point anyway as their website is out of action till Thursday so I couldn't sell anyway :mad:. How can a website need a whole week's maintenance - it says it's down from 10th to 17th. Appalling customer service as usual :mad:.

If you want to transfer you'd usually just get the new provider to sort it - you shouldn't even need to contact FL, the new provider should do that.