Drawdown strategy and charges

zagfles

Linton said:

People have talked about the problem of getting the provider to pay out.  There is another one - possibly depending on provider, it is your responsibility to ensure that there is sufficient cash in your account to pay the pension and it needs to be available perhaps 2 weeks before payment date.  So if you want to be paid monthly you need to sell sufficient investments in time.  Doing this every month would be a hassle.

So in my view it is much easier just to have one annual drawdown.

Logging into your account once a month is too much hassle?? Takes 5 mins to select sales and drawdown amount. Probably less hassle than trying to sort out tax refunds annually. And less time spent than discussing it on MSE!

The_Doc

I am of the understanding that once in drawdown, the drawdown amount is still considered outside the estate for IHT purposes, even though it has been crystallised, until the point that it is taken as income. Is that correct?

Albermarle

The_Doc said:

I am of the understanding that once in drawdown, the drawdown amount is still considered outside the estate for IHT purposes, even though it has been crystallised, until the point that it is taken as income. Is that correct?

Yes that is correct.

Linton

zagfles said:

Linton said:

People have talked about the problem of getting the provider to pay out.  There is another one - possibly depending on provider, it is your responsibility to ensure that there is sufficient cash in your account to pay the pension and it needs to be available perhaps 2 weeks before payment date.  So if you want to be paid monthly you need to sell sufficient investments in time.  Doing this every month would be a hassle.

So in my view it is much easier just to have one annual drawdown.

Logging into your account once a month is too much hassle?? Takes 5 mins to select sales and drawdown amount. Probably less hassle than trying to sort out tax refunds annually. And less time spent than discussing it on MSE!

Tax refunds aren't an issue after the first ever payment if you take your annual lump sum at the end of the tax year.   

Reluctantpensioner

Expect the first withdrawal to take a while, you may be too late for this financial year. They have a legal obligation to interview you to make sure you understand the risk of blowing everything in one go.
Also expect your first tax bill to be enormous! Like 50%. Fill in a P55 form and it'll come back in days.
Over the last few years the processes have got much simpler: it used to require a for to fill in, now its more like going into a savings account and transferring to your current.
I withdraw annually, but that is because I withdraw for tax purposes, not to spend. But the downside is your credit rating: the rating agencies don't understand modern pensions, so to them I have zero income!
I pay no charges, but I my supplier short-list was based on that..