Which is the best Income Drawdown provider

ahfh1

Hi,

I'm looking for an Income Drawdown provider for a pension fund valued at £30k.

Does anyone know which is the best provider? I can't seem to find any best buy tables anywhere.

Thanks

xylophone

You might consider Hargreaves Lansdown.

http://www.hl.co.uk/pensions/drawdown

zagfles

It'll depend what you investments you're going to hold. But on small amounts HL are pretty good, also check Fidelity. Google "snowman's spreadsheet" to compare platform annual charges, but don't think it includes any specific drawdown charges (some platforms like HL don't have any).

Linton

My wife and I take drawdown from BestInvest and AJBell/Youinvest with no hassle. You need to work out the best value for the whole service - buying/selling and holding funds and shares as well as making drawdown payments.

There are comparisons of charges available: see here or seach this form for "Snowmans spreadsheet", but they may not give any info on drawdown specific charges. For those you may have to check with the providers website.

For a small pension pot, and £30K is small in the overall scheme of things, H-L may well be best as they charge on a % of pot size basis and dont charge for extras that other providers may.

dunstonh

I have used 5 different providers in recent times for drawdown. There is no one-size-fits-all best solution. The best one is the one that fits your circumstances and needs.

I can't seem to find any best buy tables anywhere.

So, is your definition of best is more about cost than functionality/features?

ahfh1

dunstonh wrote: »

I have used 5 different providers in recent times for drawdown. There is no one-size-fits-all best solution. The best one is the one that fits your circumstances and needs.


So, is your definition of best is more about cost than functionality/features?

Yes, more about cost. I can't see any additional features being used. It'll simply be used to withdraw out money as and when.

Shedman

ahfh1 wrote: »

Yes, more about cost. I can't see any additional features being used. It'll simply be used to withdraw out money as and when.

As you seem to intend to hold the funds in cash then I would also suggest HL as a good option as they don't charge for holding cash in a SIPP and don't charge for drawdown of tax free lump sum or income payments so you can basically get it for free (so long as you don't take everything out or close the account in the first year and incur the account closure fee - seems to be a recommendation to leave around £1000 as a minimum until after 12 months). This is what we have done for wife's pot of a similar size to yours.

Linton

ahfh1 wrote: »

Yes, more about cost. I can't see any additional features being used. It'll simply be used to withdraw out money as and when.

Withdrawing money from a SIPP as and when is an additional feature as it requires the provider to set up and manage PAYE for you.

dunstonh

Yes, more about cost. I can't see any additional features being used. It'll simply be used to withdraw out money as and when.

So things like provider A requiring paper forms every time you do a withdrawal vs provider B being paperless and allowing requests to be submitted online would not be important to you?

Do you want a provider that can pay withdrawals same day using CHAPs or one that will pay out when its your turn in the queue and you get it two weeks later?

Do want a provider that has a cash account to handle your planned withdrawal method (you dont say what strategy you are following one assumes you have one)?

These are just some of the things to consider.

Linton

I believe: H-L have free drawdown. BestInvest charge £100 annually for taking drawdown if you have less than £100K invested.

etienneg

How do charges for UFPLS withdrawals compare with those for drawdown? I'm just wondering if charges might make the UFPLS route preferable.