Are Prudential a good choice for flexible access drawdown?

DavidWoodland

Hello all,
Newby here looking for opinions and helpful comments.

My DB Pension was transferred into a Prudential Retirement Account - Flexible access drawdown in early 2022.
My plan was to retire shortly afterwards but an opportunity arose that has resulted in a new retirement date of  April 2024.
I have read a lot of negativity towards Prudential but i have only had a relatively good experience based on communication of some minor queries, mainly around freezing monthly ongoing charges to my IFA. 
Also i have experienced what i think is a good growth rate over the last 12 months (considering Liz Trust mini budget and other impacts) of over 3% after charges of 1.6%.  (1.1% as of February as i have frozen payments to my IFA)  It is currently growing around an annual 6.5% rate.
But my main question is Prudential a good long term strategy choice?
I have a larger than average pension pot and my plan is have a comfortable retirement.  I don't intent to take all of my 25% tax free but use it to subsidise an annual income paying a lower tax rate.  If i retire in 2024 i will still have around 9 years to go before state pension comes into play so will probably be adjusting my monthly withdrawals to find a good level that meets my needs and doesn't erode the pot too much.

Initially when my pension was transferred i wasn't 100% sure about choosing Prudential but was advised that it suited me best, for the current situation.
So just looking for opinions or maybe experiences of someone with Prudential who is/was using the flexible access drawdown service.

Thanks for reading.

Albermarle

Hopefully they are improving, as this is from last year.
Pru apologises for appalling customer service levels | Money Marketing

Also i have experienced what i think is a good growth rate over the last 12 months (considering Liz Trust mini budget and other impacts) of over 3% after charges of 1.6%.  (1.1% as of February as i have frozen payments to my IFA)  It is currently growing around an annual 6.5% rate

Without knowing the funds you are invested in then it is difficult to comment, except that 1.1 % is on the high side.
Do you know how it has performed since 01/01/22 to date and 01/01/21 to date ?

dunstonh

Also i have experienced what i think is a good growth rate over the last 12 months (considering Liz Trust mini budget and other impacts)

Liz Truss mini budget was actually a minor thing in the scheme of things that happened in 2022.   She gets the blame for almost everything at the moment.

But my main question is Prudential a good long term strategy choice?

Prudential is the product provider.     They also have some in house funds.   In product terms, it is expensive, restricted and easily improved upon by alternatives elsewhere.  Personally, I find the software reminds me of 1990s and how the lack of wrappers means you cannot have a complete retirement solution from Pru unless you have very basic needs.    The fund choice is woeful but to be fair, its not a SIPP.  Its a personal pension.  So, you expect limitations.

It terms of the Pru funds, which are different to the product, you would not expect them to provide better long term returns as the cost of the smoothing has to be factored in.   However, in short term negative periods, they will likely look better.   So, in the short term, yes.  In the long term no.    However, if you are in the niche of people who don't understand investments and want to pay more for smoothing as it makes you feel better, then it fits you.   If you understand investing and your investment behaviour is not to panic during negative period, then you are just paying for something that is creating drag on your returns.

You say you are getting rid of the IFA but in most cases, the cost of the IFA is much smaller than the extra cost of the pru product vs alternatives and the extra cost of the Prufund.    You mention 1.6% down to 1.1%.   Larger value client with an IFA on a passive advisory portfolio are on around 0.8x% all in which would be 0.3% without the adviser fee.   That is your context for you.

I have a larger than average pension pot and my plan is have a comfortable retirement. 

The average pension pot is around £19,000    So, lets hope you do!