Get a GRIP?

dunstonh

The only reason to move to a SIPP was if there would be lower fees.

What is your RL charge?  0.4% p.a I suspect.  And then get the mutual bonus each year which hasnt been lower than 0.15% since they started that.  So, that is a net 0.25%.   You are already in a cheap plan.

mcc100

Albermarle said:

mcc100 said:

Just to clarify, as I speak from experience, an IFA is only needed for the initial set up of the RL Pension. Once the Pension is up and running their services can be stopped at any time.

What about when you change from accumulation to drawdown? Some providers see this as another point where financial advice is necessary. Prudential for example. Aviva's policy also seems a bit unclear.

It'll be another couple of years before I move to drawdown and I won't need to take financial advice. With regards to Prudential, my partner is in drawdown with her Prufund and she does not use an IFA/FA.

[Deleted User]

RLP GRIP 5 is down >5% over 12 months and up 9% over 3 years.  Nothing to write home about but not terrible.  US dollar did a lot better. Seems to hold quite a lot of “property”.  No idea why. Not sure what form they hold it in. Valuations for illiquid assets can be misleading. 

https://markets.ft.com/data/funds/tearsheet/summary?s=0P0000ZLBQ

Its showing 1% expense ratio which is very high.  Assume you are getting a discount but then IFA charges more than offset any discounts.  You should be able to run a SIPP for around 0.2% in total charges although some providers seem to charge for withdrawals.

bostonerimus

Given the current level of your RL pot a prudent annual withdrawal from the 335k might be around 10k. With SP and your DB pension an income of 22k seems feasible. The tricky part will be the years from 62 to 67 when you will have to take out more from your RL pot and if the markets are down that could mean that you'll eat away at your pot too quickly. Also have your factored your IFA fees etc into your 22k of income. If you start by withdrawing something like 4% from your RL pot then 0.7% is going to go to the IFA ie almost 20% of your drawdown will go to the IFA. This is a big argument for ditching the IFA IMO.

Albermarle

mcc100 said:

Albermarle said:

mcc100 said:

Just to clarify, as I speak from experience, an IFA is only needed for the initial set up of the RL Pension. Once the Pension is up and running their services can be stopped at any time.

What about when you change from accumulation to drawdown? Some providers see this as another point where financial advice is necessary. Prudential for example. Aviva's policy also seems a bit unclear.

It'll be another couple of years before I move to drawdown and I won't need to take financial advice. With regards to Prudential, my partner is in drawdown with her Prufund and she does not use an IFA/FA.

We have had a number of posters complaining that the Pru charge a one off fee of 3% for advice ( from an internal Pru advisor) before moving a pension into drawdown. Maybe it does not apply to all Pru pensions.