is putting funds into an drawdown worth it

Fife59

hi folks

I have a NHS pension but as I am a higher band tax payer I intend to start a draw down pension from either standard life or prudential . I believe NHS have better deals with them. I would probably end up with a final pot of about £50k

However although I get tax relief on the amount I put in to the pension , I will need to pay tax on taking it out, apart from the 25% tax free. I will also need to see IFA as it will be over the £30 k   and that will be a few thousand. So my question is , it it worth it for a £50k pot or would I be better in an ISA where I can take it all out tax free


thanks

Dazed_and_C0nfused

Why do you think you will need an IFA?

It may well be a sensible thing to do but what relevance does £30k have?

MarkCarnage

It looks like you may be confusing the requirement to get advice from an IFA where a DB pension transfer value is over £30k, with what you seem to be contemplating, which is setting up a new personal pension arrangement. If you are a higher rate taxpayer now, and likely not to be in retirement, then the pension route is likely to be more tax advantageous than an ISA, but with more restrictions attached. 

You can't transfer your DB pension from NHS to drawdown or similar anyway, as they are an unfunded scheme and don't permit transfers out of this nature. 

Fife59

I thought if your pension pot was over £30k you needed to have a IFA before you could draw it down ? 

Dazed_and_C0nfused

Fife59 said:

I thought if your pension pot was over £30k you needed to have a IFA before you could draw it down ? 

Where have you read this?

Marcon

Fife59 said:

I thought if your pension pot was over £30k you needed to have a IFA before you could draw it down ? 

No. You are only required to receive advice if you are transferring your pension out of:

• a defined benefit scheme to a defined contribution scheme;
• or from a defined contribution scheme which has 'safeguarded benefits' (broadly, promises such as a guaranteed annuity rate).

dunstonh

 I believe NHS have better deals with them.

They are better than default but since 2013, no-one is on default for new business anyway (unless you go direct to provider).  Don't assume the deals are better than others out there.  I haven't looked for some years but last time, the whole of market pricing had better pricing.

I will also need to see IFA as it will be over the £30 k   

No you don't.  That only applies where there are safeguarded benefits or the provider requires you to use an intermediary.

Fife59

Firstly thanks for your replies
I wont be a high tax earner when I retire

I have my superann pension and I have a Vanguard pension SIPP which has 9k in it . I know they do not have drawdown just now but I was going to cross that bridge later.
I have a couple of ISA which at present are on a fixed rate 
anyway I have some extra cash from my wages which I am putting into my vanguard SIPP 2030 and 20% blended. However ,when looking at SPPA site they are saying NHS have preferential deals with standard life and prudential . So I wondered 

• should I move my vanguard sipp to them 

• should i keep vanguard and open standard life or prudential

obviously I got a bit confused about the 30k thing that was me looking myself and getting confused - apologies
I retire in five years so was not sure what to do with the extra monthly pennies which will come to approx £50k by retirement - I hope

NottinghamKnight

Depends on what the preferential deals are, make enquiries first and see what their charges are likely to be.

Albermarle

Although the charges for the Vanguard SIPP are clear , normally charges on pensions with Standard Life , Prudential are variable depending on the client. 
Also with a SIPP there is a platform charge and a charge for the actual investments you hold within it .
However I know Standard Life just have one charge for their traditional pensions and then various % discounts .
So you need to be careful you compare like with like .

Fife59

Okay thank you. I will give me both a call and no doubt be back for further deciphering of the information