BEST WAY TO DO DRAWDOWN FOR A VERY SMALL POT

epsilon4900

Am going to take monies from a very small pension pot. I have others but the one from which I am going to take monies has around £10k in it. More than 10 but less than 11. I plan to take the monies over the next year  or two subject to making sure that the amounts after the TFLS don't make my earnings more than my basic rate tax allowance. I am not therefore bothered about growth in the monies which stay in the drawdown until I can remove them. I am wondering about some kind of drawdown cash account? Anyway please can you advise me the best way to set this up? My pension is with Phoenix Life and they can't offer drawdown so tell me I have to transfer out either to their Standard Life option or elsewhere. I am beginning to ring various places but wanted to see what anyone here advises? Many thanks.

tacpot12

My partner used AJ Bell in the way you described. She had a small pension that she was able to transfer to AJ Bell. She never invested the cash that was transferred, she just setup a drawdown arrangement that emptied the account over two years.

ProDave

When I wanted to do similar, and Aviva would not offer me anything other than an annuity, I transferred the lot to a HL SIPP and then into a drawdown SIPP where it is now paying me monthly all under my control of how much it pays so I can plan the withdrawal rate to suit my needs.

xylophone

You might find that Hargreaves Lansdown would suit your purpose. https://www.hl.co.uk/pensions/sipp

No fee to hold cash - no charge for drawdown.

Have you had a Pension Wise appointment? Phoenix will almost certainly ask.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

Albermarle

I am beginning to ring various places

Ringing around is a bit old school, when you can easily find out the info on the internet and most of the providers prefer you to operate the pension online.

Some good suggestions above and a similar provider would be Fidelity.

SIPP | A Which? Recommended Provider | Fidelity

epsilon4900

tacpot12 said:

My partner used AJ Bell in the way you described. She had a small pension that she was able to transfer to AJ Bell. She never invested the cash that was transferred, she just setup a drawdown arrangement that emptied the account over two years.

Thanks AJ Bell is on my list to approach to see what they can offer.

epsilon4900

ProDave said:

When I wanted to do similar, and Aviva would not offer me anything other than an annuity, I transferred the lot to a HL SIPP and then into a drawdown SIPP where it is now paying me monthly all under my control of how much it pays so I can plan the withdrawal rate to suit my needs.

ProDave said:

When I wanted to do similar, and Aviva would not offer me anything other than an annuity, I transferred the lot to a HL SIPP and then into a drawdown SIPP where it is now paying me monthly all under my control of how much it pays so I can plan the withdrawal rate to suit my needs.

ProDave said:

When I wanted to do similar, and Aviva would not offer me anything other than an annuity, I transferred the lot to a HL SIPP and then into a drawdown SIPP where it is now paying me monthly all under my control of how much it pays so I can plan the withdrawal rate to suit my needs.

I am also going to approach HL. I am a bit confused about SIPPs though and I don't understand why a SIPP is a good idea for this drawdown process I seek?

epsilon4900

As  mentioned I am going to approach HL as well. Hadn't considered Fidelity. Thanks for that suggestion. I don't like just looking stuff up online. I prefer to discuss things with someone and ask my questions and take notes. That's just how I am. I had a good chat with Standard Life yesterday and am clear what to do next IF I were to take up their drawdown account.

ader42

Another good thing about HL is that they could split your pot in two, so they are both less than £10k and so classified as small pots.
These pots could then be taken without triggering the MPAA - which may or may not be a concern. 

epsilon4900

ader42 said:

Another good thing about HL is that they could split your pot in two, so they are both less than £10k and so classified as small pots.
These pots could then be taken without triggering the MPAA - which may or may not be a concern. 

Thanks. That is an interesting tip. I hadn't worried about the MPAA as I cannot afford to pay in anything like the amount to which I would now be restricted once it is triggered. On the other hand if this is a means to avoid that operating then it may well be a good idea. Certainly worth further investigation.  Annoyingly I am hearing conflicting messages about an MVR. Standard Life said that Phoenix Life had indicated that there were no MVRs at this time. The bumph I received from Phoenix Life today seemed to be saying there could well be an MVR. Also it did not say when you can avoid those and as I understand it that's usually on your selected retirement date. So I need to check what is going on with Phoenix Life and as usual feel that any time I do anything which seems to move me in the direction of actually taking any monies from these policies that the company concerned ( AVIVA, PHOENIX LIFE ) do as much as they can to make it as awkward as possible for me. I feel I go round and round in circles.

xylophone

The bumph I received from Phoenix Life today 

Do you mean that you requested a "retirement pack" from Phoenix and they have set out your options for taking the pension?

What exactly does the letter say?