We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
SIPP Drawdown HL
Comments
-
That is normal with SIPPs. Whilst PPPs, SHPs, and AE or Occupational pensions will close down, that is because they use ACC units and wont get any residual income. SIPPs can use inc units and can often get interest or dividends arriving later.jaybeetoo said:HL didn’t close my SIPP account. They left it open with nothing in it.
Some platforms will have an automated task set 3-12 months down the road to deal with residual income and then close the pension. Others will just leave it set up even if its nil balance.
The worst one to have, in my opinion, is a Scottish Widows SIPP. They retain any residual income and donate it to charity.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Ouch, that's awful and should be banned. My wife had a workplace pension with SW but it was ACC units so wasn't affected when she converted it to cash and transferred it to AJ Bell. But if AJB had that policy and she transferred elsewhere now that could result in up to £10k of dividends being - putting it bluntly - stolen.dunstonh said:The worst one to have, in my opinion, is a Scottish Widows SIPP. They retain any residual income and donate it to charity.
0 -
Ouch, that's awful and should be banned.i agree. Some of the residual balances we have seen over the years have run into many thousands of pounds. The providers shouldn't have a say in what they do with your money.My wife had a workplace pension with SW but it was ACC units so wasn't affected when she converted it to cash and transferred it to AJ Bell.It only happens on the SW SIPP. Not on their insured products.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
UPDATE
In case anyone is interested, I started process of withdrawing my tax free lump Thursday 15/1 after selling enough to cash.Friday 23/1 SIPP cash & Drawdown accounts separated.Monday 26/1 cash credited to current account.Very happy at the speed, and now lower fees on my small account from 1 March0 -
They leave it open, because you can keep contributing to it. I am in drawdown with HL, but I still put money into my SIPP every month for the tax benefits.jaybeetoo said:HL didn’t close my SIPP account. They left it open with nothing in it.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards