Vanguard SIPP/drawdown - is it really the lowest cost option

fizio

I am going to soon transfer my DC pension pot to a drawdown provider and have been reading up on comparisons of providers. Its pretty clear that the lowest cost provider very much depends on how much you have and where you want to invest it. In my case its circa 300k and I will invest in a few vanguard funds - as I have ISA's there and happy with the service. In my case it does seem like the cost will be £395 annually plus fund charges and I can't find any other costs for drawing down. I also looked at AJ Bell and Interactive Investor as I have accounts with them already but it does seem like VG is the way to go - or have I missed anything? 

Stargunner

Fidelity do not charge for drawdown and you can still invest  in your choice of Vsnguard funds on their platform, as well as having the option to invest in many others.

zagfles

Stargunner said:

Fidelity do not charge for drawdown and you can still invest  in your choice of Vsnguard funds on their platform, as well as having the option to invest in many others.

Vanguard platform is a bit cheaper but you're restricted to Vanguard funds

Notepad_Phil

Not sure why you've decided to pay £395 rather than the £240 it could cost with ii, unless you're planning to substantially reduce the amount you're holding in the SIPP.

Just noticed that you've already got an account with ii, so I'd have thought the only additional cost with them would be the £10 per month for the SIPP so £120 annually plus the one off costs to purchase the funds you want if you don't have enough credits.

In fact they're doing a special deal at this minute where they're giving six months free SIPP and some cashback(£250 I think for a £300k transfer) - you'll need to check the details as these might be time limited.

And if you're going to deal purely with ETFs rather than funds then I believe Fidelity and HL have capped their costs for holding them which could favour them.

RoadToRiches

II offers appear to roll each month :-) They take their time with transfers though. :-(

Stargunner

zagfles said:

Stargunner said:

Fidelity do not charge for drawdown and you can still invest  in your choice of Vsnguard funds on their platform, as well as having the option to invest in many others.

Vanguard platform is a bit cheaper but you're restricted to Vanguard funds

But the op would be saving £395 per year by not paying drawdown fees on fidelity

Thrugelmir

About time % fees were banned on such activity. Costs no more to process a £15k drawdown transaction than a £50K one.  Vanguard are no different to other providers. Happily gouge their customers. 

zagfles

Stargunner said:

zagfles said:

Stargunner said:

Fidelity do not charge for drawdown and you can still invest  in your choice of Vsnguard funds on their platform, as well as having the option to invest in many others.

Vanguard platform is a bit cheaper but you're restricted to Vanguard funds

But the op would be saving £395 per year by not paying drawdown fees on fidelity

No drawdown fees on Vanguard either

fizio

I appreciate the feedback and will recheck interactive investor and see how it compares to vanguard as it would be useful to have access to more than vanguard - should I need it.. 
~I didn’t look at fidelity as I am trying not have too many investment platforms to manage - unless the savings/advantages are significant..

Albermarle

fizio said:

I appreciate the feedback and will recheck interactive investor and see how it compares to vanguard as it would be useful to have access to more than vanguard - should I need it.. 
~I didn’t look at fidelity as I am trying not have too many investment platforms to manage - unless the savings/advantages are significant..

With a £300K pot , Fidelity platform fee is 0.2% and no other charges for funds.
If you hold ETF's/IT's/shares the cost for those is capped at £45 pa + £10 to buy them. 

RoadToRiches

fizio said:

I appreciate the feedback and will recheck interactive investor and see how it compares to vanguard as it would be useful to have access to more than vanguard - should I need it.. 
~I didn’t look at fidelity as I am trying not have too many investment platforms to manage - unless the savings/advantages are significant..

I think II works out cheaper if you have about 80k in a SIPP compared to vanguard. I’m moving over to them for my SIPP and ISA and worked out I would save a fortune on fees doing so compared to paying percentage fees that add up, even when taking into account their charging cap. Also not restricted to just vanguard doing so, and some vanguard investments don’t show up on the vanguard platform VWRP accumulation for example by some oddity.