II - fees removed for drawdown

LHW99

Seems from October II will no longer be charging fees on drawdown

https://www.ii.co.uk/changes-october-2020?utm_source=IBMW&utm_medium=email&utm_campaign=Test - Terms of service update - VIP version - 250820&utm_content=&spMailingID=10347257&spUserID=NDM0OTQ0MDQzMDc5S0&spJobID=1575475429&spReportId=MTU3NTQ3NTQyOQS2

They were not a large amount previously, but every little helps......

Thrugelmir

Pre-empting Vanguard perhaps. 

dunstonh

Most providers/platforms dont charge nowadays. 

Albermarle

On the other hand administering a drawdown ( tax etc ) must be an expense over and above normal . Margins must be getting squeezed pretty thin at some providers ( apart from HL  )

TBC15

dunstonh said:

Most providers/platforms dont charge nowadays. 

I hate to sound confrontational but,from the 15 providers on Snowman’s spreadsheet 12 (now 11) do charge.

Thrugelmir

Albermarle said:

On the other hand administering a drawdown ( tax etc ) must be an expense over and above normal . Margins must be getting squeezed pretty thin at some providers ( apart from HL  )

HL earnt £91m from interest on customers cash balances . Their single biggest source of income. Fee reductions may well be a seen as recompense in light of the recent regulators warning regarding same to all providers. 

dunstonh

TBC15 said:

dunstonh said:

Most providers/platforms dont charge nowadays. 

I hate to sound confrontational but,from the 15 providers on Snowman’s spreadsheet 12 (now 11) do charge.

OK. Maybe this is a DIY vs advice provider issue.    So, I will revise the comment and say "on the advice side, you don't see many charging for drawdown nowadays".

I wonder if that is an economy of scale issue.    Drawdown is still mostly done via advisers and maybe the volume for DIY drawdown is not quite at a level yet for many providers to reduce/remove the charge.

Albermarle

TBC15 said:

dunstonh said:

Most providers/platforms dont charge nowadays. 

I hate to sound confrontational but,from the 15 providers on Snowman’s spreadsheet 12 (now 11) do charge.

That spreadsheet is mainly retail low cost SIpps and yes most of the fixed charge /very low cost ones do charge for drawdown .
However other pension  providers , like Royal London , Aviva etc do not normally charge . Maybe they did in the past. 

[Deleted User]

In N America nobody imposes charges of this nature. They are small but irritating. I don’t know why a piece of software can’t do all the work.  Only a matter of time before most UK providers are forced to remove these charges. Brokerages have other ways of making money (lending, charging for trades, funds, etc). 

Lokolo

Thats good news. Moving my company pension into my existing SIPP and reduction in fees sees my annual platform costs go from 0.2% down to 0.07%

Lokolo

dunstonh said:

TBC15 said:

dunstonh said:

Most providers/platforms dont charge nowadays. 

I hate to sound confrontational but,from the 15 providers on Snowman’s spreadsheet 12 (now 11) do charge.

OK. Maybe this is a DIY vs advice provider issue.    So, I will revise the comment and say "on the advice side, you don't see many charging for drawdown nowadays".

I wonder if that is an economy of scale issue.    Drawdown is still mostly done via advisers and maybe the volume for DIY drawdown is not quite at a level yet for many providers to reduce/remove the charge.

But as a firm, do you not pay for use of the platform? Or are you saying any IFA can use any of your platforms free of charge?