Recommended SIPP for Pension Draw-Down

Steve_s1

Hi all,
I'm close to retirement and thinking of moving my Scottish Widows company pension (worth about £500k) into a SIPP, and starting to draw-down from it. Any recommendations? I currently have S&S ISAs with Hargreaves Lansdown and Interactive Investor. I know HL is more expensive but I've heard that their customer service may be better than II. 
Thanks for any advice.
Steve

Doctor_Who

Steve_s1 said:

Hi all,
I'm close to retirement and thinking of moving my Scottish Widows company pension (worth about £500k) into a SIPP, and starting to draw-down from it. Any recommendations? I currently have S&S ISAs with Hargreaves Lansdown and Interactive Investor. I know HL is more expensive but I've heard that their customer service may be better than II. 
Thanks for any advice.
Steve

I've been using UFPLS withdrawals from my SIPP with II and everything has been fine. All done online and the money in my current account within 10 days. I've been with II for ~10 years (transferred from HL), their customer service has definitely improved over the years and any contact I've had recently (by secure message) has been answered quickly and efficiently.

Albermarle

Also you do not hear many complaints about other modern SIPP providers, like Fidelity or AJ bell for example.
OP these providers offer cashback for transfers sometimes. It should not be the reason for transferring but if you are going to transfer anyway....

Scrudgy

I recently transferred my DC pension into ii, then crystalysed part of my pot to take a tax free lump sum. Very impressed with them. They kept my DC provider on their toes, then processed the PCLS in 4 working days, and that was money in my account.

Answered all my secure messages in a day or less. Answered 2 phones calls I made without any time holding on the line.

Hope it stays this way, can’t fault them so far. All for £12.99 per month.

L9XSS

My vote, Vanguard, account set up quickly, numerous transfers both in and out with no issues or undue time delays. Platform is very easy to use, charges are in the lower quartile for pension providers. Pension, pre retirement and pension drawdown set up easily after taking a TFLS.

dunstonh

L9XSS said:

My vote, Vanguard, account set up quickly, numerous transfers both in and out with no issues or undue time delays. Platform is very easy to use, charges are in the lower quartile for pension providers. Pension, pre retirement and pension drawdown set up easily after taking a TFLS.

Only negative then is that it is not actually a real SIPP (it lacks the major SIPP functionality of being able to invest from the marketplace.

older_and_no_wiser

For your size of SIPP you'll pay £2250 in platform fees per year to HL and £156 with II.

I have SIPPs with both and they are equally good when it comes to servicing of the accounts. HL are quick to answer the phone and easier to speak to someone in person. II are quick at responding to secure messages and have been good when I've transferred ISAs and SIPPs. 

My workplace pension is with HL and I transfer it every so often across to II due to the lower fees and I plan to have it all in II when I enter retirement and start to draw down on it as I've heard lots of good reports on how easy it is with them.

DavidT67

older_and_no_wiser said:

For your size of SIPP you'll pay £2250 in platform fees per year to HL and £156 with II.

Surely that depends on what they are invested in !?  HL has a fee cap for ETFs and shares investment, same as AJ Bell.

Albermarle

DavidT67 said:

older_and_no_wiser said:

For your size of SIPP you'll pay £2250 in platform fees per year to HL and £156 with II.

Surely that depends on what they are invested in !?  HL has a fee cap for ETFs and shares and Investment Trusts  investment, same as AJ Bell.

HL cap is £200
Aj Bell is £120
Fidelity £90

Plus some minor differences in buying and selling fees.

Pipthecat

Is there any difference in flexibility?  Do they all support FAD where you can take just tax free elements?

dunstonh

Pipthecat said:

Is there any difference in flexibility?  Do they all support FAD where you can take just tax free elements?

The only real major difference is that platforms that also do business via intermediaries will do regular UFPLS but most DIY platforms only do single premium UFPLS.   So, if phased UFPLS is your planned method and you are going DIY, you may need to do an annual draw, stick it in a savings account and draw from that each month rather than having the pension pay it monthly.

Otherwise functionality will be similar.   Administration required may well differ a fair bit.