Income drawdown benefit review

brianposter

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review". Is there any way that this pointless review can be avoided ?

xylophone

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review". Is there any way that this pointless review can be avoided ?

Did you originally agree to this under the terms of your contract?

garmeg

Is this capped drawdown?

tacpot12

I believe that a benefit review is required for each drawdown payment, to ensure that no particular payment takes you over the LTA, but my provider doesn't charge for them. The process should be highly automated, so you should ask them how they justify the charge. 

brianposter

xylophone said:

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review". Is there any way that this pointless review can be avoided ?

Did you originally agree to this under the terms of your contract?

I am not sure there is any record of the original contract.

brianposter

garmeg said:

Is this capped drawdown?

Apparently yes.

dunstonh

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review"

Is this the provider or an adviser?

What do you class as substantial? - most providers nowadays charge nothing for drawdown.  Although a charge was more common years ago.   However, even then, the charge was usually something like £150-£250 and not substantial.

Is there any way that this pointless review can be avoided ?

The review is required.  It is not pointless as it does serve a purpose.   However, maybe your pension (Assuming its the provider charging it) could be moved to a more modern option.

brianposter

dunstonh said:

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review"

Is this the provider or an adviser?

What do you class as substantial? - most providers nowadays charge nothing for drawdown.  Although a charge was more common years ago.   However, even then, the charge was usually something like £150-£250 and not substantial.

Is there any way that this pointless review can be avoided ?

The review is required.  It is not pointless as it does serve a purpose.   However, maybe your pension (Assuming its the provider charging it) could be moved to a more modern option.

It is the provider. Charging £75 when the pension is not being drawn down seems to me to be completely superfluous.

dunstonh

brianposter said:

dunstonh said:

I see that my SIPP is being charged a substantial sum for an "income drawdown benefit review"

Is this the provider or an adviser?

What do you class as substantial? - most providers nowadays charge nothing for drawdown.  Although a charge was more common years ago.   However, even then, the charge was usually something like £150-£250 and not substantial.

Is there any way that this pointless review can be avoided ?

The review is required.  It is not pointless as it does serve a purpose.   However, maybe your pension (Assuming its the provider charging it) could be moved to a more modern option.

It is the provider. Charging £75 when the pension is not being drawn down seems to me to be completely superfluous.

£75 is hardly substantial.
You said earlier that the pension is in drawdown.  Capped drawdown to be precise and capped drawdown has a mandatory requirement for a review.   So, not completely superfluous.
You can always switch to flexi-access drawdown if that is the better option.  Or change to provider that does not charge for a review (but that doesn't mean it will be cheaper as some providers that are "all in" on a single charge may be cheaper or may be more expensive than those that operate a menu charges for different services.   

brianposter

dunstonh said:

£75 is hardly substantial.
You said earlier that the pension is in drawdown.  Capped drawdown to be precise and capped drawdown has a mandatory requirement for a review.   So, not completely superfluous.
You can always switch to flexi-access drawdown if that is the better option.  Or change to provider that does not charge for a review (but that doesn't mean it will be cheaper as some providers that are "all in" on a single charge may be cheaper or may be more expensive than those that operate a menu charges for different services.   

To me the charge looks like a typical financial industry scheme for cheating money out of peoples savings.

Is simply switching the fund to flexi-access drawdown likely to have any disadvantages if I am not proposing to make any further contributions ?

Thrugelmir

brianposter said:

dunstonh said:

£75 is hardly substantial.
You said earlier that the pension is in drawdown.  Capped drawdown to be precise and capped drawdown has a mandatory requirement for a review.   So, not completely superfluous.
You can always switch to flexi-access drawdown if that is the better option.  Or change to provider that does not charge for a review (but that doesn't mean it will be cheaper as some providers that are "all in" on a single charge may be cheaper or may be more expensive than those that operate a menu charges for different services.   

To me the charge looks like a typical financial industry scheme for cheating money out of peoples savings.

Is simply switching the fund to flexi-access drawdown likely to have any disadvantages if I am not proposing to make any further contributions ?

Companies have to cover their operating costs and investment in technology.