Money saving on drawdown???

Madeinireland

Hi,

Some platforms charge an additional sum per annum (e.g iweb £180) when you enter drawdown. I’m thinking I may drawdown for a while until the state pension kicks in and then stop drawing down from my SIPP. Is it feasible to then switch to another broker with a similar setup who would then consider you to not be in drawdown as you haven’t drawn down anything with them and thus save the additional costs until you next decide to plunder your funds?

I know I could move to someone like HL who charge nothing for drawdown but their percentage charge would make that very expensive.

Thanks...

dunstonh

Is it feasible to then switch to another broker with a similar setup who would then consider you to not be in drawdown as you haven’t drawn down anything with them and thus save the additional costs until you next decide to plunder your funds?

You would have crystallised funds. That cannot be avoided unless you plan to use UFPLS or phased flexi-access drawdown.

Madeinireland

So as soon as you are crystallised the platforms owners will charge you their drawdown fee even if you take nothing out?

dunstonh

Madeinireland wrote: »

So as soon as you are crystallised the platforms owners will charge you their drawdown fee even if you take nothing out?

Charges for drawdown are not that common on the intermediary providers. So, I have little experience of them. So, you would have to check with your chosen provider. However, I believe there are some that do it per drawdown transaction and others that do it if you have crystallised funds.

shinytop

With II you pay a one off fee for each UFPLS (£50+VAT) or an annual fee for being in drawdown (£100+VAT), which is:

"Payable annually in advance, in additional to the annual SIPP fee. The charge includes regular payments, and is payable even if you elect to take ‘nil’ income in any year"

ffacoffipawb

Youinvest charges £25 for taking a PCLS and £100 a year for drawdown if an income is taken. No extra charges for crystallised funds where no income is taken.

Hargreaves Lansdown dont charge for PCLS or any drawdown. Obviously their other charges are a lot higher than Youinvest.

I have pensions with both, the vast majority with Youinvest.

Taking PCLS next month at 55 due to LTA issues (exceeded it already). First world problems.

Slinky

shinytop wrote: »

With II you pay a one off fee for each UFPLS (£50+VAT) or an annual fee for being in drawdown (£100+VAT), which is:

"Payable annually in advance, in additional to the annual SIPP fee. The charge includes regular payments, and is payable even if you elect to take ‘nil’ income in any year"

Good lord, talk about money for old rope, you could pay the charge and not even get the rope.

shinytop

Slinky wrote: »

Good lord, talk about money for old rope, you could pay the charge and not even get the rope.

yup I know but for me it's still cheaper than using one of the fee-based providers.

Joey_Soap

shinytop wrote: »

yup I know but for me it's still cheaper than using one of the fee-based providers.

Indeed, you have to look at the whole SIPP picture over a full year, not just cherry pick the bits you do/do not like.