Pension Transfer to Drawdown Investment advice with Rathbone Multi Asset Strategic growth fund

How2retire928

Hi
I had 2 pensions with Allied Dunbar and moved one of them 5 years ago to a Drawdown and Rathbone Multi Asset Strategic growth fund with Quilter taking a 25% tax free sum.

I want to transfer my 2nd pension again to a drawdown and take another 25% tax free lump sum. I was wondering if there was any advice on a better performing fund with less charges to consider changing to than the Rathbone Multi Asset Growth fund with Quilter. I am happy with Quilter but the Rathbone fund charges do seem a little high.

I am 58 & still working and have a fund of £250k to transfer taking 25% out of it at the transfer with the balance to invest in a drawdown pension.

Any advice or recommendations would be appreciated.
Many Thanks

dunstonh

I was wondering if there was any advice on a better performing fund with less charges to consider changing to than the Rathbone Multi Asset Growth fund with Quilter.

Loads of potential alternatives.  However, you do not get advice here. Just comment and opinion

Will Quilter allow you to transfer it in without advice?  Their platform is an intermediary platform which is available to their own salesforce and IFAs.

I am 58 & still working and have a fund of £250k to transfer taking 25% out of it at the transfer with the balance to invest in a drawdown pension.

Why are you drawing money out whilst you are still working?  That reduces the amount you can get out tax free over your lifetime by increasing the tax payable.

Albermarle

 I was wondering if there was any advice on a better performing fund with less charges to consider changing to than the Rathbone Multi Asset Growth fund with Quilter. I am happy with Quilter but the Rathbone fund charges do seem a little high.

You have to be clear what you mean by ' better performing' . Funds that perform the best in the good times tend to drop the most in the bad times. Many people nearing retirement, prefer more stability to more growth. 

Many posters on here do not pay for advisors/portfolio managers/ wealth management etc, and DIY their investments and pensions. Often using low cost platforms and low cost funds.

That is not to say everybody doing that is successful, and it is not a route for everybody of course. Others will use a local IFA, as opposed to these national organisations like Quilter.

Maybe a good idea to post what all your charges currently are.

How2retire928

dunstonh said:

I was wondering if there was any advice on a better performing fund with less charges to consider changing to than the Rathbone Multi Asset Growth fund with Quilter.

Loads of potential alternatives.  However, you do not get advice here. Just comment and opinion

Will Quilter allow you to transfer it in without advice?  Their platform is an intermediary platform which is available to their own salesforce and IFAs.

I am 58 & still working and have a fund of £250k to transfer taking 25% out of it at the transfer with the balance to invest in a drawdown pension.

Why are you drawing money out whilst you are still working?  That reduces the amount you can get out tax free over your lifetime by increasing the tax payable.

Hi & thanks for your post.

Yes. Quilter will allow you to transfer it in without advice.
They will even walk you through the form filling.

As for why I am drawing money out. Just want to get the benefit of some of the tax free amount now and put it to some use.
Why would it reduce the amount of tax free during the lifetime. I thought you had a 25% allowance against a £1 Million total pension fund before taxable discount is removed.

Unless the investments shoot up more than 15% then the 25% tax free amount eligible will likely be the same - will it not

gm0

Dunstonh is referring to the fact that you are paying either basic rate or higher rate income tax now.  And consuming your tax free allowance via employment.  And that the pension taken later could have used the nil rate band in a different year vs taxable band now.

Tax free

25% of pot up to LTA
Annual income amount within the nil rate band

So you pay more tax when you draw alongside other income.  And you have more income.  Which may be right for you. 
Or an uneccessary extra tax if it just goes to a savings account after consumption

dunstonh

Taking the 25% on drip, when needed, will result in more tax free money being taken from the pension than taking it as a lump at the start.   Obviously, if you have a spending need that requires it, that makes it irrelevant.  However, if there is no spending need, then taking it at the start is not a good idea.

How2retire928

Albermarle said:

 I was wondering if there was any advice on a better performing fund with less charges to consider changing to than the Rathbone Multi Asset Growth fund with Quilter. I am happy with Quilter but the Rathbone fund charges do seem a little high.

You have to be clear what you mean by ' better performing' . Funds that perform the best in the good times tend to drop the most in the bad times. Many people nearing retirement, prefer more stability to more growth. 

Many posters on here do not pay for advisors/portfolio managers/ wealth management etc, and DIY their investments and pensions. Often using low cost platforms and low cost funds.

That is not to say everybody doing that is successful, and it is not a route for everybody of course. Others will use a local IFA, as opposed to these national organisations like Quilter.

Maybe a good idea to post what all your charges currently are.

Hi and thanks for your post reply.

I currently have my fund with Quilter pitched in a "Medium risk" set of funds with the Rathbone Multi Asset Strategic Growth which should give some protection if there was any crash? Who knows really. I originally had this fund in a higher growth fund but when transferred it over, took the more medium risk view - as you point out.

My previous IFA recommended the move from Allied Dunbar to Old Mutual {now Quilter] when we transferred the previous £200k pension fund to a draw down pension with a 25% tax free draw.
This was a cost only service, so no rolling advisor charges just the Quilter charges and the fund charges which total around 0.91% p.a. recurring charges

Hope that helps

How2retire928

gm0 said:

Dunstonh is referring to the fact that you are paying either basic rate or higher rate income tax now.  And consuming your tax free allowance via employment.  And that the pension taken later could have used the nil rate band in a different year vs taxable band now.

Tax free

25% of pot up to LTA
Annual income amount within the nil rate band

So you pay more tax when you draw alongside other income.  And you have more income.  Which may be right for you. 
Or an uneccessary extra tax if it just goes to a savings account after consumption

Thank you for that.  Makes sense.
Unfortunately, I am in the 40% band currently and once I get to State Retirment age will be struggling to get anything at the zero rate tax band once I draw down form any personal pensions on top of the state pension.

But I see your point. thanks

How2retire928

dunstonh said:

Taking the 25% on drip, when needed, will result in more tax free money being taken from the pension than taking it as a lump at the start.   Obviously, if you have a spending need that requires it, that makes it irrelevant.  However, if there is no spending need, then taking it at the start is not a good idea.

Thanks Dunstonh

Appreciate that point. As you noted, I have a spending need that I want to use the 25% of this pension fund. And have taken a 25% off a previous pension fund transfer amount 5 years ago. I was planning to do the same exercise as I transferred this £250k and would only be taking 25% of the £250k amount this time. So the 25% draw on each individual amount should not exceed the 25% of the total of current investments

But I take your point. I would have left this fund with Allied Dunbar if it was already in a drawdown fund but it was very old and was before these new pension funds were thought of. So I need to move it to a draw down pension with "someone" and draw my 25% as I transfer the fund.

Appreciate the comments and help