iWeb drawdown

allanm01

I'm thinking of transferring my SIPP to iWeb. Currently it's in 2 accounts, uncrystallised and drawdown. I plan to move it all to drawdown, then transfer that one SIPP. So immediately on transfer there's the annual charge for the SIPP plus the 'income' charge; £180 for each = £360 total.

What I'm not clear on is how charging works on iWeb drawdown itself.

1) I'd assume (and hope!) that trades to cover income are covered by the standard drawdown charge. Is this correct?
2) I have a number of funds. Does it draw from the largest fund first, or a weighted proportion from each, or can you choose?
3) Is there any provision for indexing, or do all changes to payment sums involve the £90 charge levied to 'review income levels'?

EdGasketTheSecond

I assume you have to sell some of your investments first to cover what you plan to take out before you try and take the money out. Otherwise how would the platform know what to sell? I also assume you pay the trading fees for selling; that is how I assume it works.

Shedman

What's the size of your total combined pots? Have you considered other SIPP providers say HL for example? I know people say they are expensive but they don't charge a fee for drawdown so for your total fee of £360 on iWeb it would cover the HL annual charge (at 0.45%) of a SIPP value of £80K if all in funds and if your SIPP was all in Shares/ITs/ETFs the capped fee would be £200 so you'd be quids in.

Are you looking to transfer in specie (ie transfer your current funds/shares) or going to cash first. Your post implies the former. Just ask as I found it a lot quicker and easier to transfer in cash compared to when I did an in specie one (plus transfer out fee was less). Obviously there's the risk (or upside) of being out of the market for a period (it did work in my favour at the time ).

allanm01

EdGasketTheSecond wrote: »

I assume you have to sell some of your investments first to cover what you plan to take out before you try and take the money out. Otherwise how would the platform know what to sell? I also assume you pay the trading fees for selling; that is how I assume it works.

Well, that's the bit I'm unsure about. I wouldn't have expected to have to keep active in any SIPP income arrangement - I'd have expected to be able to say "I want a grand a week" (or whatever) and the platform sells to cover that if there isn't enough in cash. Especially when I'm 90 and addled!

If not, I'd wonder what the additional £180pa for drawdown is actually for? Maybe it's tax admin. This is a broader question for any drawdown SIPP I guess, not just iWeb.

allanm01

Shedman wrote: »

What's the size of your total combined pots? Have you considered other SIPP providers say HL for example? I know people say they are expensive but they don't charge a fee for drawdown so for your total fee of £360 on iWeb it would cover the HL annual charge (at 0.45%) of a SIPP value of £80K if all in funds and if your SIPP was all in Shares/ITs/ETFs the capped fee would be £200 so you'd be quids in.

I'd steer clear of HL for political reasons! I'm actually in Fidelity, > 250K so 0.2%, until I dip below when it's 0.35%. Still it's a fair point, the fixed fee arrangement only pays while the pot stays above a threshold.

Shedman wrote: »

Are you looking to transfer in specie (ie transfer your current funds/shares) or going to cash first.

My plan was in specie, but it's worth considering cash. When I previously consolidated my 3 pensions into my SIPP it took forever. Transfer out is free either way.

noh

allanm01 wrote: »

Well, that's the bit I'm unsure about. I wouldn't have expected to have to keep active in any SIPP income arrangement - I'd have expected to be able to say "I want a grand a week" (or whatever) and the platform sells to cover that if there isn't enough in cash. Especially when I'm 90 and addled!

If not, I'd wonder what the additional £180pa for drawdown is actually for? Maybe it's tax admin. This is a broader question for any drawdown SIPP I guess, not just iWeb.

It's a low cost SIPP. SELF Invested Personal Pension.
It is your responsibility to manage the investment choices and ensure there is sufficient cash available to meet your draw down needs.

The Benefits guide is here
https://www.iweb-sharedealing.co.uk/PDFs/SIPP-Benefits-Guide.pdf