How to get a drawdown without huge expenses

Nora1962

My current pension provider will give me 25% tax free but will not allow me to access the rest on a drawdown. It's only worth just over £22k so annual payments are really not worth having, I need to access it in chunks. My circumstances mean a draw down is the best option for me. How difficult is it for me as an individual, to find someone to transfer it to who will allow a drawdown. How do I even start? I've tried a finance company who wanted £800 to transfer it, to access the 25%, then it's locked for three years when I have to start all over again. That's a lot of fees to access a small amount of money. Any advice would be appreciated. Thanks

dunstonh

ow difficult is it for me as an individual, to find someone to transfer it to who will allow a drawdown.

Not at all difficult.

I've tried a finance company who wanted £800 to transfer it, to access the 25%, then it's locked for three years when I have to start all over again.

That sounds like a fixed term annuity.

That's a lot of fees to access a small amount of money.

It's not a lot of fees. It's probably cheaper than the pension that you paid nothing for directly when you took it out. However, it is the wrong product. You need the right product. Not the wrong one.

Different providers focus on different products. So, contacting a provider that doesn't offer the product you need could result in your ending up with something unsuitable. you need to focus on what you are after and then using a provider that matches that.

MK62

If it's a DC pension (defined contribution, aka money purchase) then you can do it yourself - I should think any of the standard DIY SIPP platforms would be fine.
For pot that size, I'd probably go with Hargreaves Lansdown - they are one of the biggest SIPP providers and the website is very good. Although they charge 0.45%, as opposed to the more common 0.25%, there are no drawdown charges.

If it's a DB pension (ie defined benefit, aka final salary) then it could be more problematic. Although the rules state you only need professional advice if the transfer is for >£30k, it appears many firms are refusing to take them without advice being given, on any transfer size.