Fees for withdrawal from SIPP

Underconstruction

Having reached the grand age of 55, I have decided to take a modest sum from my SIPP to make life a little more pleasant.
To crystallise this, now separate pot, in a way which gives me a tax free lump sum up front followed by monthly taxed sums as I had directed, I have been quoted a 4% charge of the total sum involved excluding VAT which seems high to me?!
Can anyone who has recently given similar instruction to their own financial advisors provide an idea of the equivalent fees they are paying for doing the same please?

marlot

I transferred mine to Hargreaves Lansdown. There is an annual fee of 0.45% for the platform (on the expensive side), but the crystallisation and monthly drawdowns are free.

IvanOpinion

Try putting your numbers in http://www.comparefundplatforms.com/ to get a rough idea of fees. There are also links that give you other fees that may be relevant. Remember though that does not give you an idea of customer service (which may be important to you).

AlanP_2

Hopefully your advisor has talked to you about MPAA if you are still working and paying in to a pension as you will be limited to £4k a year contributions?

SonOf

I have been quoted a 4% charge of the total sum involved excluding VAT which seems high to me?!

Percentage needs to be in context with the amount involved. 4% of £10,000 is cheap. 4% of £100,000 is above average. 4% of £500,000 is damned expensive.

Can anyone who has recently given similar instruction to their own financial advisors provide an idea of the equivalent fees they are paying for doing the same please?

If you have ongoing servicing arrangements with the adviser, then often the drawdown side is done at no further cost as it falls within the ongoing servicing. If you are doing this on transactional basis (i.e. one off advice) then you would expect a fee.

Also, by taking at 55 and not being retired, this could be viewed as a high-risk case. Taking money out of your pension before retirement when it could leave you short in retirement is a major concern for the regulator. And the FCA said this month that they are going to be looking at a sample of retirement income cases this year from firms. So, its a current hot potato that the firm may be pricing higher as they don't really want it.

Albermarle

Apart from any financial advice fees , the fees charged for drawdown by pension providers vary .
Personal /workplace pension providers usually do not have any extra charges .
A couple of the SIPP providers ( HL & Fidelity ) also do not charge extra.
Most of the other SIPPs ( whose basic charges are lower than HL & Fidelity ) have various extra charges , typically a couple of hundred pounds a year.