Flex drawdown v UFPLS

trickydicky14

I need to move my old pension as currently it does not allow for flex drawdown. I’m thinking of going to Vanguard. My question is in simple terms, what needs to be considered when choosing between flexible drawdown and UFPLS. What situations would you use one over the other. My situation would be not needing to touch the pension for the next 3 years or so and when I do, it would be small amounts only when needed. Currently I don’t work but receive state pension and a very small NHS pension which uses up my personal allowance.

Marcon

Try this: https://www.moneymarketing.co.uk/opinion/ufpls-vs-drawdown/

Expotter

On the options of drawdown vs. UFPLS you might find this decision tree helpful, but you might also want to consider the small pots pension rules, if applicable

https://www.mandg.com/dam/pru/shared/documents/en/pruag02731.pdf

xylophone

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/retirement/what-would-drawing-down-Vanguard-pension-look-like

trickydicky14

Marcon said:

Try this: https://www.moneymarketing.co.uk/opinion/ufpls-vs-drawdown/

Expotter said:

On the options of drawdown vs. UFPLS you might find this decision tree helpful, but you might also want to consider the small pots pension rules, if applicable

https://www.mandg.com/dam/pru/shared/documents/en/pruag02731.pdf

Thanks Marcon & Expotter, that's a big help understanding things.

green_man

In theory Flexi Drawdown should cover most peoples requirements, other than an unexpected one off withdrawal (for which UFPLS would be more suitable). However Documentation requirements, access procedures and costs seem to cloud the issue somewhat.   

I have ultimately settled for one UFPLS withdrawal per year as this is cheaper than the flexi drawdown option for my provider (Halifax SIPP). Some providers do not charge for flexi access drawdown, however I found these providers much more expensive for general platform charges.  So work out how you would like to access your money, then check providers costs for that option along with their other charges.

Halifax SIPP seems good for larger pots with little trading (I.e my scenario)