Seeking alternative to Aegon for drawdown

mcbragg

I became an Aegon drawdown customer around 5 years ago via an IFA, when 4 pensions were consolidated into one underlying Vanguard Life Strategy 40 Fund, managed by Aegon. With the IFA assistance, I started withdrawing 2 years ago, but decided last year decided to break with the IFA and do it myself. The main reason was the IFA fee for what looked like a straightforward admin task. I wanted to take £12k with UFPLS of £3k and £750 monthly for 12 months.

I had noticed that Aegons charges at 0.52% were on the high side compared to others but thought about the old adage 'you get what you pay for'. I found out the hard way that i was mistaken. Very mistaken. Accessing my pension proved to be a very difficult, complicated and lengthy process with many exasperated phone calls and emails to Aegon. If any MSE members feel it would be useful to hear the whole sorry saga, let me know and i'll put it up in a separate post.

I am now looking for an alternative drawdown provider, but wish to retain the underlying VLS40 fund which is currently around £250k. I am happy making my own decision every 12 months on the amount to withdraw, taking a 25% tax free lump sum and 12 monthly payments. I dont intend to amend the VLS40 fund without seeking IFA guidance.
I would be very interested to hear the experiences of any forum members who,
1)are managing drawdown themselves through providers other than Aegon.
or
2)have moved from an existing drawdown provider to a new one - charges, timescales, paperwork involved,etc.

Obviously the fees are a consideration, but having a fairly straightforward and timely drawdown process is my main concern.

Albermarle

There are many alternative providers , where you can also stay invested in VLS40 and organise drawdown . However be aware that drawdown processes at other providers are often a bit cumbersome , especially when setting it up , but hopefully better then Aegon.
0.5% is not excessive but you can get cheaper. Be aware that the providers with the cheapest headline rate for investing generally , then  have extra charges for a pension, extra charges for drawdown etc .
Transferring a pension is relatively straightforward. Normally you can do it on line but I think with pensions already in drawdown you will probably have to call them to go through the process.

dunstonh

The main reason was the IFA fee for what looked like a straightforward admin task. 

If only it was.   

I had noticed that Aegons charges at 0.52% were on the high side compared to others but thought about the old adage 'you get what you pay for'.

That is not high.   VLS is 0.27% (0.22% OCF + 0.05% TC) which puts the platform charge at 0.25%.  Not the cheapest but right in the level you expect.

Accessing my pension proved to be a very difficult, complicated and lengthy process with many exasperated phone calls and emails to Aegon.

DIY drawdown is frustrating to many DIY investors.   It is not the straightforward admin task you think it is.  You will get a similar process with all DIY providers.   

With advice, the IFA takes on the responsibilities for making sure what you are doing is suitable and to make the necessary disclosures.  When you DIY, the platform is not giving advice but has to obtain some info and make the necessary risk warnings.   That can actually create more work for you than if the adviser was doing it.   An adviser with a client of many years can streamline the process to what may appear a straightforward admin task.  However, the IFA will spend hours behind the scenes doing it.   A DIY platform cannot streamline that and has to through that process each time.

anselld

UFPLS is difficult with AEGON because they make you take advice as it is a benefit crystalisation.  It is much easier if you take the drawdown route.   You still need to take the advice to move a chunk of funds into a drawdown account but once it is there the process of taking income is entirely self service on line.

Having said that I am still considering moving mine to Interactive Investor to save fees.  One drawback is that II operate a single account which combines drawdown and uncrystallised funds but I think I can live with that.

hyperhypo

I moved ex company sipp from Aegon at a discounted 0.23% platform fee to Fidelity at higher charges because of usability hassle... software etc. No drawdown fee either although my own fund choice isn't cost optimized. With single Vls40 fund choice
 would Vanguard accept a drawdown transfer or are they only doing uncrystallised accounts at present?

TVAS

Have you asked Aegon to remove the ongoing adviser fee from your plan?

dunstonh

It is worth noting that Aegon have about 5  pension plans open for new business currently along with dozens of legacy plans.  So, the options and requirements for some will differ from others.

mcbragg

TVAS said:

Have you asked Aegon to remove the ongoing adviser fee from your plan?

I wasn't aware of any ongoing adviser fee tbh. Only the 0.52% fee, which i assumed to be a fixed ongoing platform fee. I will have a closer look at the documentation from them, which they are very generous with.. there are dozens of pages.

mcbragg

dunstonh ...

DIY drawdown is frustrating to many DIY investors.   It is not the straightforward admin task you think it is.  You will get a similar process with all DIY providers.   

With advice, the IFA takes on the responsibilities for making sure what you are doing is suitable and to make the necessary disclosures.  When you DIY, the platform is not giving advice but has to obtain some info and make the necessary risk warnings.   That can actually create more work for you than if the adviser was doing it.   An adviser with a client of many years can streamline the process to what may appear a straightforward admin task.  However, the IFA will spend hours behind the scenes doing it.   A DIY platform cannot streamline that and has to through that process each time.

I understand where you are coming from and appreciate your comments. I am finding, like many others no doubt, drawdown pensions quite a steep learning curve. It seemed reasonable to me at the time, to save £300 by talking directly to Aegon. If they had been honest from the outset about what was about to ensue, and the length of time it was going to take i would stumped up the fee no question.