Has anyone any experience of the drawdown process with Vanguard?

Malchester

Just a quick question. If Vanguard (or any other company) inform you that you need these two phone conversations mention by the OP, but you do not engage with it and do not provide answers, will/can they refuse you drawdown? I only ask because I went through the process while looking for a drawdown provider and did not progress my interest with anyone who said I had to have a telephone conversation - hence going with PensionBee

cfw1994

Thrugelmir said:

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. 

Do share with us where those winners lie - stop just teasing us!

mat1964

Does anyone know if the process is easier with II.  I am just in the process if transferring one of my DC pots to an II Sipp and will be looking to initial a small TFLS payment.

Thrugelmir

cfw1994 said:

Thrugelmir said:

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. 

Do share with us where those winners lie - stop just teasing us!

Vanguard is a far smaller player in the UK. Doesn't offer a fraction of the services it does in the US. 

Albermarle

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. 

Sounds a bit like a job creation scheme 

john-306

I found Vanguard's drawdown process quite simple.
Only thing I didn't like was not being able to specify which funds (I have 3 plus cash) I could place into drawdown.
It has to be a percentage of all.
Also the 25% tax free of the drawdown had to be taken immediately. I'd have preferred it monthly with my payment.

cfw1994

Thrugelmir said:

cfw1994 said:

Thrugelmir said:

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. 

Do share with us where those winners lie - stop just teasing us!

Vanguard is a far smaller player in the UK. Doesn't offer a fraction of the services it does in the US. 

Oh, I get that you suspect they will not be tomorrow’s winner….
…...I thought you’d share who you think tomorrow’s winners will be!

k6chris

john-306 said:

I found Vanguard's drawdown process quite simple.

Also the 25% tax free of the drawdown had to be taken immediately. I'd have preferred it monthly with my payment.

Really?!  That is a huge limitation.

dave_hendy

Cottage_Economy said:

As the title says. 

Have just initiated the process with Vanguard to take a lump sum from DH's SIPP and have been told he has to speak to a Retirement Consultant first.

The intention has always been to use 1/5th of the SIPP each year between the ages of 60 and 64 to supplement the first part of his pension (the final salary bit) from Royal Mail until the second one kicks in (the defined contribution bit) at 65, thus allowing him to retire early. The total pot is about £22k. We've looked at the options and intend to withdraw it as a UFPLS. The lump sum will not take him over his personal allowance, so there's no tax to pay, and we want the remainder of the SIPP to stay invested in what it currently is, which is appropriate for his age and risk tolerance. 

Do Vanguard provide the option of UFPLS as well as flexible drawdown? I only want to take £12 out of my SIPP for the first few years.

Albermarle

Also the 25% tax free of the drawdown had to be taken immediately. I'd have preferred it month

ly with my payment.

The info on their website contradicts this .

With flexible income (drawdown) you start by taking up to 25% of your pension as a tax-free cash lump sum up front. The taxable part of your pension is then moved into a 'drawdown account'.

You can take your tax-free cash in one go. Or take it bit by bit and move money into your drawdown account gradually.

Do Vanguard provide the option of UFPLS as well as flexible drawdown?

Again from their website

Individual lump sums

You can take smaller lump sums over time or cash in your whole pot in one go. If you take a large lump sum, you could end up with a big tax bill.

Get a mix of tax-free cash and taxable income at the same time.

Each time you take money out of your pension 25% will be tax-free and the other 75% will be taxed as income