Has anyone any experience of the drawdown process with Vanguard?

Malchester

Yes I am in drawdown with PensionBee and did not have to go through these hopes. I requested another withdrawal this morning, all done online with a handful of questions to answer and, hey presto, all done and just wait for the funds to arrive in about 6 or 7 days. I did consider Vanguard but they insisted I needed a phone conversation every time I wanted to withdraw funds (I have this in writing) but they later denied that was the case.

Cottage_Economy

Malchester said:

Yes I am in drawdown with PensionBee and did not have to go through these hopes. I requested another withdrawal this morning, all done online with a handful of questions to answer and, hey presto, all done and just wait for the funds to arrive in about 6 or 7 days. I did consider Vanguard but they insisted I needed a phone conversation every time I wanted to withdraw funds (I have this in writing) but they later denied that was the case.

Yes, that’s what vanguard is saying to us and it’s in writing on all their email communications to us. If they are denying it, they’re telling porkies. We have to have an initial conversation of up to an hour, then work through an online illustration and ‘drawdown pathway’ then book a second consult for up to one hour, then they’ll action the request. I’ve had an independent consultation with Pension Wise but that is not sufficient apparently. 

I’m disappointed in how time-consuming it is shaping up to be, although the reality might be different. The whole pension is only £21,500 and we want to split that over the next five years. What a rigmarole to have to go through every year for £4-ish. They won’t send me the list of fees for the drawdown options unless I have the consults. 

Should have done my research into the drawdown process. I probably would have made a different choice. 

OldBeanz

My son tried to transfer a Vanguard pension to HMG. There is a time constraint which Vanguard duly ignored. We await the "independent" complaint handler ( another member of staff) who has been appointed to look into this.
HL know the process backwards, charges are reasonable for smaller pensions and they have well trained staff who talk to you.

Albermarle

They won’t send me the list of fees for the drawdown options unless I have the consults. 

AFAIK there are no extra charges for drawdown with Vanguard . If you pick different investments for drawdown compared to those used before drawdown , then there will be some small differences , but no specific charge for going into drawdown.

Many people just leave the investment portfolio the same before and after drawdown.

Fidelity also insist on a telephone conversation , but only one I think and I mainly hear positive reactions to it .

They are probably a good idea to make sure inexperienced investors know what they are actually doing and not to make some big blooper . Unfortunately it means more experienced investors have to go through the same process, which can seem a bit unnecessary .

Thrugelmir

Vanguard are quite rightly covering their behinds. Given the less sophisticated nature of their client base. You can foresee the misadvised claims down the road that will be made if Vanguard weren't to adopt the procedure they are. When markets tumble and growth expectations fail to materialise. 

Cottage_Economy

Thrugelmir said:

Vanguard are quite rightly covering their behinds. Given the less sophisticated nature of their client base. You can foresee the misadvised claims down the road that will be made if Vanguard weren't to adopt the procedure they are. When markets tumble and growth expectations fail to materialise. 

I think, as someone mentioned above, it’s probably also an exercise to see if any products or services can be sold. Otherwise a 40 minute conversation with a Pension Wise consultant, which was thorough and followed up with a summary of the discussion and further links to information by email, should be enough, if evidenced, to reassure them I have considered the options available, especially in light of the small size of the pension pot. This is overkill. 

I agree a consultation should be part of the process, but not insisting on their own when it has already been done by Pension Wise. 

Thrugelmir

Cottage_Economy said:

Thrugelmir said:

Vanguard are quite rightly covering their behinds. Given the less sophisticated nature of their client base. You can foresee the misadvised claims down the road that will be made if Vanguard weren't to adopt the procedure they are. When markets tumble and growth expectations fail to materialise. 

I think, as someone mentioned above, it’s probably also an exercise to see if any products or services can be sold. Otherwise a 40 minute conversation with a Pension Wise consultant, which was thorough and followed up with a summary of the discussion and further links to information by email, should be enough, if evidenced, to reassure them I have considered the options available, especially in light of the small size of the pension pot. This is overkill. 

I agree a consultation should be part of the process, but not insisting on their own when it has already been done by Pension Wise. 

Vanguard has had to change it's business model in the UK. As can be seen from it's recently launched Vanguard Professional Range. Other products including ETF's are undercutting their historic low fee selling advantage. Providing a good service level comes at a considerable overhead cost. Small accounts simply don't generate enough revenue to be profitable. The landscape is changing. Suspect tomorrow's winners lie elsewhere. 

Cottage_Economy

Thrugelmir said: 

Small accounts simply don't generate enough revenue to be profitable.

In that case, hopefully, the vanguard consultation tomorrow will be exceptionally short.

Thrugelmir

Cottage_Economy said:

Thrugelmir said: 

Small accounts simply don't generate enough revenue to be profitable.

In that case, hopefully, the vanguard consultation tomorrow will be exceptionally short.

There's no obligation on your part. The difference as always is that the business takes a macro view, while the customers looks at situation from a personal micro level. Both parties have very different objectives. 

sandsy

Cottage_Economy said:

Thrugelmir said: 

Small accounts simply don't generate enough revenue to be profitable.

In that case, hopefully, the vanguard consultation tomorrow will be exceptionally short.

The regulator may make pension providers give you these risk warnings but they can't require you to engage with it and provide answers.