Another draw-down question

Tabby_cat

@Dazed, both myself and OH retired at the same time, but thank you. Your comment prompted me to look into it and it doesn't apply.

green_man

Tabby_cat said:

Thanks all for your comments so far.
I should have said, I've not been working for 2 years now and have been living off of savings. 
I'll need to check with Scottish Widows r.e. charges but I've been assured they can do whichever option I choose.
@MK62 Thanks for the heads up r.e possible annual draw-down fee. I'll be sure to check that.
@green_man Would you know and be willing to share the relevant costs for each option from your Halifax SIPP? Then when I speak with SW I'll have a reference point of what others charge.

Halifax SIPP charges:

UFPLS: £90.           

Flexiaccess drawdown: £180
Designating more funds to drawdown : £90
Admin fee (for over £100k pot).  £180 / year.

In the above the UFPLS fee is not particularly cheap...BUT...combine that with the Admin fee and for a large pot this is the cheapest fee structure I found, if you only plan on withdrawal a year.   Total fees of £270/ year.   For example on Hargreaves Lansdown my fees would be over £2500/year.   Of course there are other considerations with the provider, so don’t just consider these fees.

Dazed_and_C0nfused

Tabby_cat said:

@Dazed, both myself and OH retired at the same time, but thank you. Your comment prompted me to look into it and it doesn't apply.

You must be well organised with your finances to manage on such a small taxable income

When you start taking your pension you will seem like millionaires!!

squirrelpie

green_man said:

Halifax SIPP charges:

UFPLS: £90.           

Flexiaccess drawdown: £180
Designating more funds to drawdown : £90
Admin fee (for over £100k pot).  £180 / year.

In the above the UFPLS fee is not particularly cheap...BUT...combine that with the Admin fee and for a large pot this is the cheapest fee structure I found, if you only plan on withdrawal a year.   Total fees of £270/ year.   For example on Hargreaves Lansdown my fees would be over £2500/year.

Just to note that those H-L fees only apply to 'funds'. If you restrict yourself to shares and ETFs then the maximum charge for everything no matter how much you have invested is £200 per year. Between investment trusts and ETFs there are very few other investments I would want to make.

jamesd

green_man said:

Halifax SIPP charges:

UFPLS: £90.           

Flexiaccess drawdown: £180
Designating more funds to drawdown : £90
Admin fee (for over £100k pot).  £180 / year.

In the above the UFPLS fee is not particularly cheap...BUT...combine that with the Admin fee and for a large pot this is the cheapest fee structure I found, if you only plan on withdrawal a year.   Total fees of £270/ year.   For example on Hargreaves Lansdown my fees would be over £2500/year.   Of course there are other considerations with the provider, so don’t just consider these fees.

So Halifax is expensive for drawdown while HL will pay you a transfer bonus then charge you £0 for all of those Halifax things. Just transfer some uncrystallised money to HL each year and draw out most of it.

It seems unlikely that Tabby_cat has the over 600k pot size required to get HL charges to £2500 a year. For just holding that much there are cheaper places but mix and match can save money.

Alexland

squirrelpie said:

Just to note that those H-L fees only apply to 'funds'. If you restrict yourself to shares and ETFs then the maximum charge for everything no matter how much you have invested is £200 per year. Between investment trusts and ETFs there are very few other investments I would want to make.

Or even better Fidelity who cap on ETFs/ITs at £45 pa with no charges for drawdown just the occasional £10 trades. Fidelity often run very generous transfer cashback offers which on a large account valuation cover their fees for many years. I moved my SIPP from Halifax SD to Fidelity and no regrets.

green_man

Yes indeed. The points above are worth noting.  The reason all the providers have different charging structures is so each of them can claim to be best ‘value’ for some customers.   For MY balance of funds the cheapest is Halifax, for others it will be someone else.

Thrugelmir

Alexland said:

squirrelpie said:

Just to note that those H-L fees only apply to 'funds'. If you restrict yourself to shares and ETFs then the maximum charge for everything no matter how much you have invested is £200 per year. Between investment trusts and ETFs there are very few other investments I would want to make.

Or even better Fidelity who cap on ETFs/ITs at £45 pa with no charges for drawdown

Fidelity SIPP carrries a % charge depending on the amount invested with them. They couldn't operate at £45 per annum. 

MK62

They do state that "for exhange traded instruments" the service fee is capped at £45pa
Of course, trading in them is not then free as it is with "funds"......so what you gain on the swings, you may lose on the roundabouts, but for some it could well be a very cost effective way of investing......I suspect relatively few of their clients end up paying just £45pa though, as Thrugelmir said, they probably couldn't operate if a significant number did.

Alexland

Thrugelmir said:

Fidelity SIPP carrries a % charge depending on the amount invested with them. They couldn't operate at £45 per annum. 

The uncapped % charge is only on funds and yes those customers pay more - as I said on ETFs/ITs it is capped at £45 pa plus the occasional £10 trade fees (or £1.50 for regular trade plan or dividend reinvestment).
On our accounts the only platform costs we pay are £3.75 pm and £1.50 qtr reinvestment.