pension move from AVIVA to vanguard 2030 fund

bubblybabe

Hi all

All plans went to pot due to dealing with unexpected family events .Came back to drawdown options today and wanted to share a couple of extra thoughts with you 

With my Aviva stakeholder pension, if I stay, take 25% as cash now (50k) and move rest (c £150k ) to drawdown, from what I can see, fund could stay in existing choices and all inclusive charges going forward would be 30k at 0.4% and 120k at 0.35 %.

 Have I misunderstood this ?

For total transparency my funds in Aviva stakeholder are:

Aviva Pensions BlackRock Consensus S2(PDF) Fund value  £76k

Aviva Pensions Corporate Bond S2(PDF) Fund value           £61k

Aviva Pensions Gilt S2(PDF) fund value                                £59k

My charges for this year were £760 which appears to be about .4% so guessing charges go down in drawdown (and not just because 25% taken out!)

Thank you in advance for any any help, thoughts or ideas, it is such a help to be able to share possibilities here without being judged (I do know I am very green when it comes to drawdown!)

Caro

x 

Albermarle

My charges for this year were £760 which appears to be about .4% so guessing charges go down in drawdown (and not just because 25% taken out!)

 You would not expect charges to go down for drawdown . For some low cost pensions they go up but probably not with Aviva.

However this 0.4% is maybe just the charges for managing the pensions and the funds may have their own charges . Aviva have so many different pension products from the past it is difficult to say . Fund charges are paid from the fund so you do not see them but it should be clear from the fund factsheets .

If you are not sure you can always call them .

dunstonh

With my Aviva stakeholder pension, if I stay, take 25% as cash now (50k) and move rest (c £150k ) to drawdown, from what I can see, fund could stay in existing choices and all inclusive charges going forward would be 30k at 0.4% and 120k at 0.35 %.
 Have I misunderstood this ?

Have you had it confirmed by Aviva that the stakeholder pension version you have supports income drawdown?    Most Aviva SHPs do not support drawdown.  However, some do have limited drawdown functionality. (i.e. not all options but some.   Usually the biggest limitation is no regular income and limited to 6 ad-hoc withdrawals a year).

 from what I can see, fund could stay in existing choices and all inclusive charges going forward would be 30k at 0.4% and 120k at 0.35 %.

Most Aviva SHPs need just £1 in the next tier for the whole amount to get the discount. Not just the slice.   Although they have some that worked on sliced basis as well.


Basically, if you are after regular income then it's unlikely the stakeholder pension is going to be suitable without some fudging and repeated inconvenience each time you want money out.

bubblybabe

Thank you for your replies

I will follow up !

my logic was, that the amount in drawdown would be 50k less and  I’m sure the info on my annual charges said no additional fund charges,but I’ll check 🙂 thank you 

Interesting re 6 withdrawals , I could live with that as mainly want to withdraw an annual  amount to add to db pension that I start drawing in jan 2022

🤔

dunstonh

Interesting re 6 withdrawals , I could live with that as mainly want to withdraw an annual  amount to add to db pension that I start drawing in jan 2022

The negative is having to go through their manual withdrawals process each time as each payment is treated as a new drawdown request.

bubblybabe

Many thanks indeed , your comments are all really helpful.

I have emailed Aviva , but no lucid response yet, they have just sent standard bumf with links to generic documents 

i have narrowed down my qu to them in the hope of getting a reply!

I’ve asked for confirmation that pension plan with prefix SM can move to drawdown

Sadly seems quite slow at Aviva end 

C