Vanguard - Moving funds to drawdown and change to II

MK62

If you want to use Vanguard's flexi-access drawdown, it doesn't appear that there is any way round this "dilemma".....
So that only really leaves two options.......either don't use drawdown (ie switch to UFPLS) or transfer to another platform....

PS......this is what Vanguard's key facts says about UFPLS -

If you wish to withdraw Benefits from your Vanguard Personal Pension via a Single Cash Lump Sum, you must have sufficient cash available in your Vanguard Personal Pension Account, in order for Vanguard complete your Single Cash Lump Sum withdrawal request. 

which suggests you must sell funds to cash yourself beforehand.

RoysV

Just had my call with them and raised a complaint of how they now don't let you choose which funds to take your money from. The lad said it wasn't the first time he'd heard this complaint this week, so I reckon quite a few mustn't be happy about it.
However he did say that Vanguard have always done it this way even though I chose which funds to take drawdown from the last 2 years.
So the upshot is I've still gone ahead with the drawdown and will just reinvest what is left in the STMM back into the other funds when it's all gone through, so I'll be out of the market for maybe a couple of weeks which may or may not work in my favour 

ian16527

RoysV said:

Just had my call with them and raised a complaint of how they now don't let you choose which funds to take your money from. The lad said it wasn't the first time he'd heard this complaint this week, so I reckon quite a few mustn't be happy about it.
However he did say that Vanguard have always done it this way even though I chose which funds to take drawdown from the last 2 years.
So the upshot is I've still gone ahead with the drawdown and will just reinvest what is left in the STMM back into the other funds when it's all gone through, so I'll be out of the market for maybe a couple of weeks which may or may not work in my favour 

I have initiated this years drawdown transfer on the 14th of Jan ( second attempt). I have moved the  tax free part to cash.

So the scenario which I was trying to avoid by using the SMMT fund has happened and markets have dropped due to Mr Trumps antics.

Vanguard have not initiated any sell orders yet. 

I will do as you are doing re investing the STMM fund back into the other funds, but it is such a palaver. I will try to work out if it has cost me anything after the dust settles.

RoysV

I don't think I'm going to bother seeing if I'm up or down to be honest.
It came down to a toss up between the stress/hassle of transferring to another provider or taking a risk with market movements. The latter won in the end, still at a loss as to why they've gone down this route though.

ian16527

RoysV said:

I don't think I'm going to bother seeing if I'm up or down to be honest.
It came down to a toss up between the stress/hassle of transferring to another provider or taking a risk with market movements. The latter won in the end, still at a loss as to why they've gone down this route though.

I understand completely. Common sense dictates you should be able to pick funds to sell to move over if you can then select funds to move in to. Its not an automatic process, but some one doing it, as I found out last year so no excuse really.

I will probably change though

RoysV

Just a bit of a follow up. I had a call from Vanguard yesterday to ask about my complaint and how I'd felt the process had been.

I explained everything again about not being happy with having to do a proportional drawdown but that at the end of the day I was only out of the market for around a week so it wasn't the end of the world.

It was more just the unnecessary admin work shuffling money about after it was all sorted.

The lad then said what I had been told was incorrect and that when I was logged in I could indeed pick which funds I wanted to use for my drawdown. So he decided to try it, the line went quiet for a bit then I got "Hmmmmm you can't" 🤔 He said he would look into it, I'm not holding my breath.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81836772#Comment_81836772

There are two ways to do it and providers code their software to one of those methods. Or they use a third party software supplier who does it that particular way and when the contract was entered into, the nitty gritty of how things are done was part of the contract discussions.

The notional method was more typical on old insured contracts where you didnt have cash accounts or need more options. i..e simple method for people who didn't have the need for more advanced options. The physical method offers more control, is more common on SIPPs and on better-quality platforms, and yields higher-quality results.