UFPLS and Flexi Drawdown advices please

planforfuture

Thanks guys for all the info and advice so far.

Vanguard SIPP has 11 target retirement ready-made portfolios funds which covers different combination % of global shares and funds. Also their charge is 0nly 0.15% and capped at £325 pa. No withdraw fees and no transfer fees.

Any comments ob Vanguard SIPP?

dunstonh

planforfuture said:

Thanks guys for all the info and advice so far.

Vanguard SIPP has 11 target retirement ready-made portfolios funds which covers different combination % of global shares and funds. Also their charge is 0nly 0.15% and capped at £325 pa. No withdraw fees and no transfer fees.

Any comments ob Vanguard SIPP?

The platform charge is 0.15% but the fund charges are on top.    So, you need to add the OCF and the TC & IC.  (IC will be nil with Vanguard funds - as it is with most fund houses)

If you like those particular funds then that is good.   They are simple.   Its unlikely they will be the best and they wont be the worst.  They are designed to be used by those that don't know what they are doing.

planforfuture

They also have 5 Lifestrategy funds serve similar purpose. 

Albermarle

I think the Target Retirment Funds are mainly aimed at people some years from retirement. As you are retired a simple Life strategy fund or similar might be more suitable.
Also most ( all?) pension providers are now required to offer four simple 'investment pathways' for those newly retired, Each is designed for a different objective. Here is a link to one but many providers offer something similar.
Investment Pathways | What is investment pathways? | Fidelity

NedS

planforfuture said:

They also have 5 Lifestrategy funds serve similar purpose. 

You could do a lot worse. Basically, decide on your appetite for risk and your financial goals, and then pick a fund that broadly matches that. Stick with it, and sell what you need to draw down each year. Some people also hold a cash buffer so they do not need to sell assets in the middle of a market crash.
As stated above, no pension provider offers advice or will manage your investments for free. Some offer a very small range of ready made options, including a 'default' option which is where folks end up if they don't actively choose something themselves. This is typical in work place DC pensions.

planforfuture

Yes this is what happened in my current work place DC pensions i.e. a combination of divervified growth investment, bonds and cash.

If i do decide to transfer my workplace pension to another income drawdown provider, am I right that they will ask me how do I want them to invest my pension fund with default options (e.g. investment pathways) and self managed etc. So the fees they charge is based on what options I choose?

Albermarle

If i do decide to transfer my workplace pension to another income drawdown provider, am I right that they will ask me how do I want them to invest my pension fund with default options (e.g. investment pathways) and self managed etc. So the fees they charge is based on what options I choose?

Firstly most modern pension providers, offer a pension you can accumulate/contribute funds to , with a drawdown option when you get to that stage. If you have an older pension that does not offer the drawdown options you want, you would normally transfer the pension before starting drawdown, and then inform the new provider that you want to start drawdown at the appropriate time.
From a workplace pension, it is likely that the transfer would have to be in cash, and when it arrived at the new provider, you would have to decide how to invest it. You can leave it 100% in cash, but this would normally be only advisable for a short period. When starting drawdown, you can leave the investments/cash the same if you want, or change them.
Most pension providers charge a platform fee for administering the pension and then there is a separate fee for the investment funds. Some ( like Pension Bee) just have one integrated fee.