Pension switching incentives

michaels

Somebody said:

Just came across this:

Is there a charge for making withdrawals?

Each UFPLS withdrawal from your Freetrade SIPP will cost £240.

+ 

Please note, currently there is no option to take benefits as drawdown from your Freetrade SIPP and you would need to transfer some or all of your pension fund to another pension plan in order to take your pension benefits using drawdown.

So only good for accumulation?

Think they had no withdrawal option at all and we're going to lose their licence because of it so I guess this was one way of getting around the problem....

Albermarle

Somebody said:

Just came across this:

Is there a charge for making withdrawals?

Each UFPLS withdrawal from your Freetrade SIPP will cost £240.

+ 

Please note, currently there is no option to take benefits as drawdown from your Freetrade SIPP and you would need to transfer some or all of your pension fund to another pension plan in order to take your pension benefits using drawdown.

So only good for accumulation?

I assume it is how they operate with low/no fees.
Withdrawing from a SIPP causes admin for the pension provider, contact with HMRC, setting up a payroll etc

granta

artyboy said:

The other irritant is that this time (and I think it's the same with the ISA transfer offer) you have to go onto their website and sign up to the offer in a 'rewards hub'.

Which is a PITA as the website wants you to use an authenticator app to log in, so I'll have to get that sorted out tomorrow when I'm back in my study with another computer... only used the app so far!

Just discovered you no longer need the authenticator app. SMS verification has just been added

granta

Freetrade

I just noticed this new clause in the terms and conditions - I don't think it has been there in the past offers.

I was planning to transfer out part of my SIPP in April 2026 as that is when the tie-in period for a previous transfer in ends.
Will that be ok under this new condition? It's after the validity period (and I haven't made any transfers out in the past 12 months) so hoping it won't affect my eligibility for this promotion?

10. The “Transfer Value” is the total value of all Qualifying Transfer(s) into your Freetrade SIPP Account at the time it is received by us, except that the Transfer Value will be reduced by: 

1. The total amount of any withdrawal(s) or transfer(s) from your Freetrade SIPP Account before the Award is made; and/or 
2. the amount of any Recycled Value. “Recycled Value” is the total amount of any previous transfers out and/or withdrawals made from your Freetrade SIPP in the twelve (12) months prior to the Validity Period and for which you have already received an award for making a transfer and/or top-up into your Freetrade SIPP under a previous Freetrade campaign. (For example, if you have previously received an award for making a transfer in/top-up to your Freetrade SIPP of £10,000 and you have since transferred out £6,000 in the last 12 months from your Freetrade SIPP, your Recycled Value will be £6,000 and your Transfer Value under this SIPP Transfer Campaign will be reduced by £6,000). 

Validity Period 

13 October 2025 - 31 December 2025 at 11:59 PM

michaels

granta said:

Freetrade

I just noticed this new clause in the terms and conditions - I don't think it has been there in the past offers.

I was planning to transfer out part of my SIPP in April 2026 as that is when the tie-in period for a previous transfer in ends.
Will that be ok under this new condition? It's after the validity period (and I haven't made any transfers out in the past 12 months) so hoping it won't affect my eligibility for this promotion?

10. The “Transfer Value” is the total value of all Qualifying Transfer(s) into your Freetrade SIPP Account at the time it is received by us, except that the Transfer Value will be reduced by: 

1. The total amount of any withdrawal(s) or transfer(s) from your Freetrade SIPP Account before the Award is made; and/or 
2. the amount of any Recycled Value. “Recycled Value” is the total amount of any previous transfers out and/or withdrawals made from your Freetrade SIPP in the twelve (12) months prior to the Validity Period and for which you have already received an award for making a transfer and/or top-up into your Freetrade SIPP under a previous Freetrade campaign. (For example, if you have previously received an award for making a transfer in/top-up to your Freetrade SIPP of £10,000 and you have since transferred out £6,000 in the last 12 months from your Freetrade SIPP, your Recycled Value will be £6,000 and your Transfer Value under this SIPP Transfer Campaign will be reduced by £6,000). 

Validity Period 

13 October 2025 - 31 December 2025 at 11:59 PM

Yeah - have to do a transfer out of current assets first

granta

michaels said:

granta said:

Freetrade

I just noticed this new clause in the terms and conditions - I don't think it has been there in the past offers.

I was planning to transfer out part of my SIPP in April 2026 as that is when the tie-in period for a previous transfer in ends.
Will that be ok under this new condition? It's after the validity period (and I haven't made any transfers out in the past 12 months) so hoping it won't affect my eligibility for this promotion?

10. The “Transfer Value” is the total value of all Qualifying Transfer(s) into your Freetrade SIPP Account at the time it is received by us, except that the Transfer Value will be reduced by: 

1. The total amount of any withdrawal(s) or transfer(s) from your Freetrade SIPP Account before the Award is made; and/or 
2. the amount of any Recycled Value. “Recycled Value” is the total amount of any previous transfers out and/or withdrawals made from your Freetrade SIPP in the twelve (12) months prior to the Validity Period and for which you have already received an award for making a transfer and/or top-up into your Freetrade SIPP under a previous Freetrade campaign. (For example, if you have previously received an award for making a transfer in/top-up to your Freetrade SIPP of £10,000 and you have since transferred out £6,000 in the last 12 months from your Freetrade SIPP, your Recycled Value will be £6,000 and your Transfer Value under this SIPP Transfer Campaign will be reduced by £6,000). 

Validity Period 

13 October 2025 - 31 December 2025 at 11:59 PM

Yeah - have to do a transfer out of current assets first

That would be ideal but I am tied in until April 2026 so if I initiate a transfer I will still be penalised. It seems a bit unfair that they take into account transfers out made even once the tie-in period has passed. This looks like an additional tie-in.
I guess they are trying to rapidly build their AUM value.

artyboy

I actually just transferred about £250k out of Freetrade into Fidelity for their offer. Which
means I'll need to move £350k back in to qualify for the current £1000 cashback offer - no big deal as I have funds free to move, but it does mean a bit more keeping track of things.

Not as though there are lot of other offers out there at the moment anyway...

granta

artyboy said:

I actually just transferred about £250k out of Freetrade into Fidelity for their offer. Which
means I'll need to move £350k back in to qualify for the current £1000 cashback offer - no big deal as I have funds free to move, but it does mean a bit more keeping track of things.

Not as though there are lot of other offers out there at the moment anyway...

Is it not a net transfer value of £50k in order to receive £1k cashback?

Altior

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

granta

Altior said:

I was going to go for the new Freetrade cashback offer, until I read this:

13. After the Award is made, if you seek to:

(a) close your Freetrade SIPP; or 

(b) make a transfer or withdrawal from your Freetrade SIPP which causes the value of your Freetrade SIPP to fall below the Relevant Value; and

(c) within 365 days of your transfer completing, we reserve the right to clawback the Award, to the extent permitted by applicable law. 

Currently I just have the basic account, so I would need to turn Plus on, which I understand is £119.88 annually. Whilst I could get the 'Award' (bonus) before the annual subscription ran out, it won't yet be 365 days after the transfer completing. Meaning I would need to subscribe to two years of Plus, otherwise they have the right to clawback the bonus

I think you would need to have Plus turned on anyway to access the SIPP?