Should I wait a while before going into drawdown?

Tight_Fart

I’d all but decided to pull my pension and go into drawdown with HL, now with the problems at Woodford I’m starting to think this may not be the best time to jump ship (pension is with the Pru)
Best to wait and see or am I being to nervous?

k6chris

When you say 'pull my pension'......?

Tight_Fart

Take the 25% and put the balance into drawdown (I’m aged 59 & 1/2)

AnotherJoe

What have the problems at Woodford got to do with your decision?

OldMusicGuy

Best to do a bit of reading to build up your knowledge about how pensions work and what funds you will use when you move to HL. The problems at Woodford have no impact on HL as a pension platform, although it certainly doesn't help their reputation. You should make sure you ignore all their "research" (marketing) about funds, because this affair has shown that is not objective (which most of us on here knew already).

You need to choose the funds you will be investing in when you move to HL. How will you do that?

Albermarle

Presumably your current pension ( with the pru) is also subject to market movements ?

The only risk with going into drawdown is if you change your investment strategy at the same time .
For example if the Pru pension is invested in relatively safe/low risk funds and then when you transfer it to HL, you invest the 75% remaining after taking the TFLS, into high risk investments .

The actual act of going into drawdown , or switching platforms, is not in itself a risk .

JSmith321

As an aside, being equally nervous of putting all my pension eggs into one basket, does anyone know if draw down pensions like this are protected by the FSCS and if so to what amount. Would I be advised to spread the risk with several providers in case HL ever went bust.

Found this:
https://www.fscs.org.uk/what-we-cover/

looks like £85k for drawdown - may need to spread the risk though annuities are 100% protected it seems

Albermarle

There is no indication that HL will go bust . They are a profitable market leader , quoted in the FTSE 100 .
Neither HL or other platforms or funds are likely to go bust as they are not banks who lend money .

Suggest you read this thread on a similar theme
https://forums.moneysavingexpert.com/discussion/comment/75911525#Comment_75911525

Dox

JSmith321 wrote: »

As an aside, being equally nervous of putting all my pension eggs into one basket, does anyone know if draw down pensions like this are protected by the FSCS and if so to what amount. Would I be advised to spread the risk with several providers in case HL ever went bust.

Found this:
https://www.fscs.org.uk/what-we-cover/

looks like £85k for drawdown - may need to spread the risk though annuities are 100% protected it seems

Read https://forums.moneysavingexpert.com/discussion/comment/75911330#Comment_75911330, particularly post 10 in that thread

AnotherJoe

JSmith321 wrote: »

As an aside, being equally nervous of putting all my pension eggs into one basket, does anyone know if draw down pensions like this are protected by the FSCS and if so to what amount. Would I be advised to spread the risk with several providers in case HL ever went bust.

Found this:
https://www.fscs.org.uk/what-we-cover/

looks like £85k for drawdown - may need to spread the risk though annuities are 100% protected it seems

Even if HL went bust it wouldnt matter as your funds are held separately. Them going bust does affect not your investments. Only if there was massive fraud by what would have to be large numbers of people on an industrial scale would that happen.
Far more realistic, and a possible reason to split your investments, is the faff and hassle that would happen if the platform had an IT problem.
And the main risk in any case will be you, what you've invested in, what you might do if theres a downturn and you panic. If you are with the Pru i suspect that's a very "safe" pension which has shielded you from stock market ups and downs, are you up to managing your own investments?

Tight_Fart

Am I up to managing my own investments? No

My concern I guess is how big is he fallout from this will be and would now be bad timing.