II - fees removed for drawdown

Albermarle

Lokolo said:

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?

Of course IFA's pay ( or actually their client pays) a fee to the pension provider . What Dunstonh is saying is that the providers used by IFA's do not normally charge extra for drawdown.. Many DIY providers do, especially the ones with very low charges generally . II have now changed the model a bit.

LHW99

II have now changed the model a bit.

And that in turn is making me review whether an annual drawdown will still be preferable to monthly "income" from the SIPP, in due course.

Notepad_Phil

II have now changed the model a bit.

I had thought of partially moving some of my ii SIPP across to another platform so that I could draw down from there to save on the £10 per month for monthly drawdown or £50 + VAT fee for UFPLS - good news that I won't need to do that now.

coyrls

LHW99 said:

II have now changed the model a bit.

And that in turn is making me review whether an annual drawdown will still be preferable to monthly "income" from the SIPP, in due course.

Even under II's old charging model there was no difference in charges for an annual vs monthly drawdown; the extra drawdown fee was charged once you had a crystallised SIPP and the charge applied even if you did not withdraw anything.

Thrugelmir

Deleted_User said:

In N America nobody imposes charges of this nature. 

US brokerages can earn money in ways UK ones cannot. Robinhood's business model being one example. 

Notepad_Phil

coyrls said:

LHW99 said:

II have now changed the model a bit.

And that in turn is making me review whether an annual drawdown will still be preferable to monthly "income" from the SIPP, in due course.

Even under II's old charging model there was no difference in charges for an annual vs monthly drawdown; the extra drawdown fee was charged once you had a crystallised SIPP and the charge applied even if you did not withdraw anything.

I think LHW99 might have been considering an annual UFPLS withdrawal at a cost of £50 + VAT - which was free of the £10 per month drawdown fee.

TBC15

After this change I was sorely tempted to go to II for my SIPP transfer from AJ Bell as I’m an II investor already ( all eggs in one platform/basket aside). What has put me off as a pensioner in drawdown the times quoted for the transfer. II are quoting 4-6 weeks they do not appear subscribe to origo software.

Fidelity are quoting a typical max of 10 working days, as disruption to regular income is a factor for me I think I’ll probably go with Fidelity.

Albermarle

Notepad_Phil said:

II have now changed the model a bit.

I had thought of partially moving some of my ii SIPP across to another platform so that I could draw down from there to save on the £10 per month for monthly drawdown or £50 + VAT fee for UFPLS - good news that I won't need to do that now.

Presumably that is why they have done it. Must have been losing customers like yourself.

LHW99

Notepad_Phil said:

coyrls said:

LHW99 said:

II have now changed the model a bit.

And that in turn is making me review whether an annual drawdown will still be preferable to monthly "income" from the SIPP, in due course.

Even under II's old charging model there was no difference in charges for an annual vs monthly drawdown; the extra drawdown fee was charged once you had a crystallised SIPP and the charge applied even if you did not withdraw anything.

I think LHW99 might have been considering an annual UFPLS withdrawal at a cost of £50 + VAT - which was free of the £10 per month drawdown fee.

Yes, correct. A small difference in overall costs, but not worth the hassle of moving platforms to avoid completely. Nevertheless an annual UFPLS may still make sense for us initially, as expenditure may be somewhat irregular over the first couple of years of retirement and having the money as a lump sum may make more sense. Just need to review it.

garmeg

Notepad_Phil said:

II have now changed the model a bit.

I had thought of partially moving some of my ii SIPP across to another platform so that I could draw down from there to save on the £10 per month for monthly drawdown or £50 + VAT fee for UFPLS - good news that I won't need to do that now.

As far as crystallised funds go, they must be fully moved to another provider. I do not think that you can partially transfer crystallised funds from one provider to another. Probably due to complexity of keeping tabs on LTA usage.

No such restriction applies to uncrystallised funds, as long as the providers are happy to oblige.