Fidelity SIPP in drawdown costs

TBC15

After cogitating on some information from Cloud Dog in a previous post I’m probably going to move my SIPP that is in drawdown from AJ Bell to Fidelity.

My intention is to sell the Unit trusts held in the SIPP with AJ Bell and transfer the SIPP over to Fidelity and invest in Investment trusts.

If I draw out a regular amount every month will the transactions come under the £1.50 regular transactions pricing?

Will Fidelity automatically cash in IT’s to pay for the monthly drawdown?

If my understanding of the charges is correct I could have charges of only £63 for a SIPP in drawdown, sounds very good value.

Albermarle

I will be interested in any answers to this . I have a Fidelity SIPP but not yet in drawdown and have wondered about the mechanics of how it actually would work.

Presume you are taking advantage of the current transfer cash back offer as well ? 

peterg1965

I I have a call booked with a Fidelity ‘retirement advisor’ next week to discuss setting up and transferring my SIPP. 

I may transfer just before I crystallise, in which case I will be transferring £255k which puts me in the 0.2% service charge category. My question to them is can I stay on that rate after I take the 25% and then continue to contribute and will transfer in my company DC pension in three years. 

I think they have pretty reasonable charges and the service advisor I spoke to was far more knowledgeable than the ii equivalent.

TBC15

Albermarle said:

I will be interested in any answers to this . I have a Fidelity SIPP but not yet in drawdown and have wondered about the mechanics of how it actually would work.

Presume you are taking advantage of the current transfer cash back offer as well ? 

Yes I noticed the cash back, sounds like a win, win.

Some may say why not just phone Fidelity and ask. I’ve tried this twice and the people on the other end didn’t appear to know what they were talking about.

Albermarle

TBC15 said:

Albermarle said:

I will be interested in any answers to this . I have a Fidelity SIPP but not yet in drawdown and have wondered about the mechanics of how it actually would work.

Presume you are taking advantage of the current transfer cash back offer as well ? 

Yes I noticed the cash back, sounds like a win, win.

Some may say why not just phone Fidelity and ask. I’ve tried this twice and the people on the other end didn’t appear to know what they were talking about.

I think it is better to book a call with one of their retirement advisors on these issues rather than just call the customer services.
Although free they will try and offer you a paid advice service but they do not push if you make it clear you do not want/need that.

Albermarle

I may transfer just before I crystallise, in which case I will be transferring £255k which puts me in the 0.2% service charge category. My question to them is can I stay on that rate after I take the 25% and then continue to contribute and will transfer in my company DC pension in three years. 

In their T's and C's I think it says they have right to charge the higher platform charge if the amount on the platform drops below £250K but not that they definetely will . Up to someone's discretion I think and probably in the T's and C's mainly to stop people taking the Mickey .

TBC15

Albermarle said:

TBC15 said:

Albermarle said:

I will be interested in any answers to this . I have a Fidelity SIPP but not yet in drawdown and have wondered about the mechanics of how it actually would work.

Presume you are taking advantage of the current transfer cash back offer as well ? 

Yes I noticed the cash back, sounds like a win, win.

Some may say why not just phone Fidelity and ask. I’ve tried this twice and the people on the other end didn’t appear to know what they were talking about.

I think it is better to book a call with one of their retirement advisors on these issues rather than just call the customer services.
Although free they will try and offer you a paid advice service but they do not push if you make it clear you do not want/need that.

I've got a call booked for the 2nd Sept.

Prism

If you moved into just investment trusts wouldn't you miss the returns from your favourite funds?

Thrugelmir

Rises to 0.35% per annum if the total value of investments held is less than £250k. 

The elephant in the room is the FCA's letter which addressess the interest that is being earnt by managers on cash deposits held. Ultimately will this lead to higher base level management fees to compensate for the lack of other revenue. 

TBC15

Prism said:

If you moved into just investment trusts wouldn't you miss the returns from your favourite funds?

Come on have you never heard of Smithson?

cloud_dog

It will be interesting to confirm if the drawdown occurs based on an available amount of cash (in the account) or whether they can/will execute a sale in line with instructions, i.e. monthly.

TBH I would expect them to charge a £10 sell fee each time (assuming they accommodate the instructions).

Have you considered the option of making a single sell annually and drawing monthly?

Perhaps questions to ask the rep?