Is anyone using LV SIPP for flex drawdown - feedback

fijamez

I’m looking at retiring next year at 56.  I have a couple of small DB that won’t kick in until I’m 60 but a meaningful DC pot with my employer but need to transfer to be able to access flex drawdown

i am speaking to a couple of advisors 

1 has very high fees for both transfer and on going management - recommends Aviva platform

the other has a deal with my db scheme and offers lower fees and capped ongoing management at 5k (materially cheaper for me). They are looking at LV SIPP

Does anyone have experience of using either platform in practice and any real life feedback

dunstonh

1 has very high fees for both transfer and on going management - recommends Aviva platform

No one single platform is the best.  If you could build your perfect platform, you would take bits from so many different ones.  Platforms are a bit like supermarkets.  Some people feel comfortable with one whilst others feel another is better.

 Aviva is ok but its front end is frustrating and lacks functionality that others have.   Some people wont need certain functionality, so that may not bother them.         Aviva in default terms is not that well priced but Aviva have thrown around a lot of special pricing terms and sometimes, that can result in good pricing.    Aviva doesn't support tiered or capped charging.

the other has a deal with my db scheme and offers lower fees and capped ongoing management at 5k (materially cheaper for me). They are looking at LV SIPP

I have no experience with LV but that it partly because it doesn't appeal to me.    It is effectively a personal pension using a small range of own brand insured funds but offers fund supermarket functionality(i.e. not full SIPP but not far off) by giving access to the Aegon platform or the Fidlity platform.  That bolting on of functionality is, at least in my head, unattractive.  I have seen bolted-on functionality elsewhere and never liked it.   However, I repeat that I have no experience with LV's way of doing it. 

Charges are mid to upper end.  And for me, a key issue is that the LV charge is higher than the Aegon and Fidelity platforms.  So, why pay more for the LV platform with those bolted on than going directly to them (or a lower cost alternative)?

In my view, the LV product only really works if you are going to invest in LV insured funds or the smoothed managed funds(which I am no fan of - Smoothed funds are like marmite.  You either love them or hate them).

Ultimately, both options can fulfil their intended purpose.   But which is best or whether there are others that are better will depend on your needs, objectives and the preferences of your adviser.

In the last State of the Nation publication by the Lang Cat (the larger of the research publications):   LV= was used by 20% of advisers.   However, just 1% of advisers use it as their primary platform (joint bottom with James Hay).   It had a respectable 24% as secondary (possibly for the insured or smoothed funds) and 75% had it as legacy (legacy is where they used to use it and still have clients on it but no longer do for new clients).

Aviva was used by 56% of advisers.  21% had it as their primary and 31% as secondary.  48% had it as legacy.

Legacy is the interesting one as it means 75% of those who used LV no longer do so, and 48% those who used Aviva no longer do so.

Albermarle

fijamez said:

I’m looking at retiring next year at 56.  I have a couple of small DB that won’t kick in until I’m 60 but a meaningful DC pot with my employer but need to transfer to be able to access flex drawdown

i am speaking to a couple of advisors 

1 has very high fees for both transfer and on going management - recommends Aviva platform

the other has a deal with my db scheme and offers lower fees and capped ongoing management at 5k (materially cheaper for me). They are looking at LV SIPP

Does anyone have experience of using either platform in practice and any real life feedback

Have you thought about not using an advisor and DIY your pension?

There are many good low cost DIY pension platforms you could transfer to that offer a modern flexible drawdown facility.

Of course you have to make some of your own decisions about investments, withdrawals etc.

fijamez

Thanks both - I have to transfer out of my work scheme to allow flex drawdown 

I have had a look at a couple of platforms (ii and aj bell) as I have been managing my fund selection within my dc scheme

I think I just want to get someone to help with the admin of drawdown to start with so am probably going with LV. Initially as fees for transfer are lower and the capped management fee means it’s less than 50bp for that part of the service

think I’m going to give them a go and see how it does and if I want more control or wider funds range look at switching in a couple of years

the other advisor just wanted to build assets and stop me spending it to keep their AUM high!!

jaybeetoo

I don’t understand why you’d pay someone to move your pension.  You can do it yourself for free.  It’s not hard.  The platforms you move to will do all the work.