Transferring an inherited pension to an Interactive Investor SIPP

graysters

Hello!

I’m currently contemplating transferring an inherited pension I currently hold in a SIPP with AJ Bell to Interactive Investor (II), as the total value (approx. £260K) is such that the fees would work out lower with II.

The slightly unusual situation is that I am under 55, and yet the pension is accessible to me today, should I wish to take a income, given that the pension was inherited and available through beneficiary flexi-access drawdown.

Does anyone have any experience of holding a beneficiary flexi-access drawdown pension with II? I spoke to them on the phone this morning and was told it should be possible for them to hold this, but wanted to ask if anyone has any first-hand experience of holding such a pension with II, particularly if you are under 55 and have already accessed it, just to have confidence that II are actually able to handle this situation, or if there’s any wrinkles it’d be worth being aware of before I make the switch.

 

Thanks all!

dunstonh

The slightly unusual situation is that I am under 55, and yet the pension is accessible to me today, should I wish to take a income, given that the pension was inherited and available through beneficiary flexi-access drawdown.

That is not unusual. Indeed, it is a common scenario for a dependent's drawdown pension.

but wanted to ask if anyone has any first-hand experience of holding such a pension with II, particularly if you are under 55 and have already accessed it, just to have confidence that II are actually able to handle this situation, or if there’s any wrinkles it’d be worth being aware of before I make the switch.

It should be a black and white answer to whether they facilitate dependents' drawdown.         How they do it could be an issue.   Some providers have the functionality to include dependents' drawdown under the same main account and same login as your other tax wrappers.    Some providers cannot do that and have to set up a standalone account with its own account number and login.    

graysters

dunstonh said:

The slightly unusual situation is that I am under 55, and yet the pension is accessible to me today, should I wish to take a income, given that the pension was inherited and available through beneficiary flexi-access drawdown.

That is not unusual. Indeed, it is a common scenario for a dependent's drawdown pension.

Perhaps not unusual, but apparently not common enough for the scenario to be covered under II's 'transfer-my-pension page's FAQ's question: 'What types of pension can you transfer to a SIPP?' 

dunstonh said:

It should be a black and white answer to whether they facilitate dependents' drawdown.         How they do it could be an issue.   Some providers have the functionality to include dependents' drawdown under the same main account and same login as your other tax wrappers.    Some providers cannot do that and have to set up a standalone account with its own account number and login.    

Indeed, having spoken to II, I'm reasonably confident they can facilitate it. But as you write, how they handle it is a question I have and I'm interested in if other's have first hand experience of the practicalities of it.
 
Whether it is under the same account, but with ringfenced funds (as AJ Bell handle it), or a separate account entirely, I suppose I'm not too fussed with, as long as there is the ability to access the funds (while still being under 55) without too much hassle would be good to know.

Sam_666

Easier thing would be to convert you fund to eft and halve fees with AJB.

maxmarioxx

FYI, ii have this page with case studies explaining how everything works:

https://www.ii.co.uk/ii-accounts/sipp/income-drawdown/notional-split

redgun

I am in exactly the same boat, beneficiary drawdown held with Standard Life, aged under 55 and would like to transfer to my II SIPP to save on fees and wider investment choice

Would be interested he your transfer goes

ClarityInvestUK

The tricky thing with comparing platforms is that the fee disclosure is bitty. You have to pull numbers from different parts of each provider’s site, and the real cost only becomes clear once you assemble everything yourself. That makes it harder than it should be to work out whether a transfer is genuinely cheaper.

1. Very few people have experience with inherited drawdown transfers.
   The product is relatively new, and inherited pensions for beneficiaries under 55 are still uncommon.
   So you won’t find many first‑hand accounts — not because the transfer is unusual, but because the user base is small.
2. AJ Bell already has the arrangement working, and that matters.
   They have one of the strongest support teams in the market for non‑standard pension cases.
   II can accept inherited drawdown, but their capability is narrower and depends heavily on Embark’s back‑office processes.
3. The under‑55 access point is the real (are they capable at this?) wrinkle.
   Some platforms’ internal systems assume “drawdown = 55+”.
   Inherited pensions are the exception, but not all providers have seamless workflows for this.
   This is where transfers can get stuck — not in the rules, but in the plumbing.
4. The fee saving is real, but perhaps only of real value if the administration is smooth.
   On £260k, II’s flat‑fee model is attractive.
   But a flat fee only helps if the inherited drawdown is handled correctly and without friction.
5. When comparing platforms, make sure you’re comparing the full cost stack.
   That means:
   • dealing charges
   • disclosed annual fees
   • custody fees buried in the small print
   • FX charges
   • underlying fund charges (disclosed and undisclosed)
   Only when you add all of these together do you get the true cost of running your portfolio — and that number is different for every investor.
6. The behavioural point:
   Most people focus on the fee difference, but the real question is “Which provider is least likely to cause administrative problems with an inherited pension that doesn’t fit their standard workflow?”
   That’s the decision that actually protects you.
7. If II can demonstrate experience with this exact scenario — inherited drawdown, under 55, already accessed — then the transfer is reasonable.
   If they can’t, staying with AJ Bell avoids the operational risk.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81863380#Comment_81863380

Very helpful, although the few people who do visit this forum with queries on inherited DC pots (widows/adult children) would likely struggle with the analytical process you set out.

splendid3795

@graysters I’m keen to hear how you, or others, get on with Beneficiary Flexi Access Drawdown at ii.

I’m in the process of transferring an inherited pension (from SJP) to Hargreaves Lansdown, where I hold a SIPP. I’ve been strung along for 3 months so far and still waiting. Despite being around since 2015, BFAD is evidently uncommon and the process at HL is confused. I’m investigating other providers since customer service seems to have taken dip, and fees have just increased at HL. My immediate priority was getting my money out of SJP and into my current provider.

I have the similar questions about access under 55, and how the drawdown pot is accessed online (held in a separate account with HL).

Following with interest…