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Approaching 55, drawdown advice
hornbeam
Posted: 08 June 2018 08:33:05(UTC)
#1

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I will be hitting 55 shortly, and I am looking into accessing my pension pot.

I have looked at various companies as my currently pension provider only gives limited funds you can access/invest in drawdown, so I will be looking for a new provider.

All the main companies like HL, AJ Bell, Fidelity, Charles Stanley, Int Inv., etc. that I have done research on, most and a lot of them have bad reviews, I was steering towards HL but have read the latest reviews on Trust Pilot and I am now a bit hesitant.

Has anybody on here used any companies and could share their experience of switch and what to look out for, I must be able to access funds online, and also be able to open a share ISA with them too.

The plan is to self manage the funds until 65, and also manage the funds within the ISA.
Samual Saunders
Posted: 08 June 2018 09:15:44(UTC)
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Hello Hornbeam,

I am now 77 and have been with HL since transferring several pensions when I was about 60-65 and have been happy with them. However. as my pension investments have grown, the ongoing fees of 0.45% quoted seem to be heavier than most others. On the plus side, their site is very easy to manage and to work with and other platforms are decidedly poorer.

Many would say move away to save money on charges, but you get what you pay for in some respects and it depends on what services you require. HL do almost fully repay initial charges and also pay a loyalty bonus, so it's not all doom and gloom so dont know what you have read.

I still think about moving to reduce charges, but as said, other sites are more complex or of far lower quality to manage the investments. They are very easy to switch funds online or over the phone, (I only use funds as I want lower risk) but have a huge selection of funds and advice. Selecting good funds is key to rewards and since switching my funds in April, the new funds have added £19k to my pot.

Although I moved £100k to drawdown a couple of years ago in order to take the £25K tax free lump sum, the remainder stays in the Sipp and I only take odd amounts from Drawdown, not regular drawings, relying more on ISA drawings for tax free top up of state pensions and having the odd splurge on cars and cruises.

You can always think about more than one platform and compare/compete as you go, switching more later if you wish.
Good luck
4 users thanked Samual Saunders for this post.
AJW on 08/06/2018(UTC), hornbeam on 08/06/2018(UTC), Saurabh Chavda on 09/06/2018(UTC), AimingforFIRE on 10/06/2018(UTC)
Tom Bards
Posted: 08 June 2018 09:28:57(UTC)
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Most of them have bad reviews?


I highly doubt the integrity of such reviews, most of them are written by people who have made bad investment decisions and need someone to blame. All those platforms are high quality, I am with HL and their service in my opinion is second to none.
5 users thanked Tom Bards for this post.
hornbeam on 08/06/2018(UTC), john brace on 08/06/2018(UTC), Tyrion Lannister on 08/06/2018(UTC), william barnes on 08/06/2018(UTC), AimingforFIRE on 10/06/2018(UTC)
AnthonyL
Posted: 08 June 2018 09:44:35(UTC)
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I have held an a/c with Fidelity since 1999, iii since 2002, and H&L since 2006, all ISAs until a few years ago when I decided to consolidate my personal pensions prior to drawdown in 2012.

Up until 2012 my demands on any of them were pretty low, simple ISAs in Funds. iii have been the hardest to deal with, H&L perhaps easiest and Fidelity in the middle. However with my assets and my wife's adding up to over £250k Fidelity's simple 0.2% platform fee with no extra charges won the day so they got my SIPP and arranged the drawdown. Additionally my wife has a monthly withdrawal plan with her ISAs which involves Fidelity selling funds if there isn't enough from Income accounts and that is at no extra cost - just everything is at the 0.2%. I could possibly shave a bit off by shopping but both H&L and iii have got more expensive in the time I've been with them.

I don't follow what is going to happen when you get to 65. Why are you only going to manage the accounts till then?
1 user thanked AnthonyL for this post.
hornbeam on 08/06/2018(UTC)
Keith Cobby
Posted: 08 June 2018 10:30:24(UTC)
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We have used Alliance Trust Savings for many years and been very satisfied with their flat rate charging, good service, and good site and reporting. Also use Barclays (less good!).

Also have accounts with F&C Management and Baillie Gifford, both excellent.
1 user thanked Keith Cobby for this post.
hornbeam on 08/06/2018(UTC)
Keith Hilton
Posted: 08 June 2018 11:34:23(UTC)
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First consider what you will be investing in, since the charges may vary for different products i.e. funds, ETF's, IT's, individual shares. Also, how much you will be investing, since charges may be tiered. If you have a large sum to invest, a fixed rate, rather than an uncapped percentage based platform may be better e.g. iii.

It may be advantageous to use a different provider for your SIPP & ISA, since it's unlikely that any one provider will be cheapest for both.

Also, if you already have certain funds in mind, check that your chosen provider supports these, as not all funds are universally supported by all sites.

I use AJ Bell for my SIPP, as it was one of the cheapest when I opened it and probably still is. I've had no real complaints over the years and find the mobile app gives reasonable functionality.
3 users thanked Keith Hilton for this post.
hornbeam on 08/06/2018(UTC), David 111 on 08/06/2018(UTC), Eddy on 08/06/2018(UTC)
hornbeam
Posted: 08 June 2018 11:42:11(UTC)
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Thanks for all the good posts, its helpful.

I dont want to use a financial advisor, I have been managing my own pension funds for about 5 years and been lucky enough to have got around 10% a year, with some success.

HL seems my first choice at the moment but lately people seem to have a few issues with their website.

I dont mind paying slightly higher charges if the online platform gives a wealth of info and is easy to use.
winki
Posted: 08 June 2018 13:52:49(UTC)
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Had a pension with HL for 10+ years. never missed a beat.

Just had a redesign and things have moved/changed as normal with such "updates".

as mentioned not a cheap contract.
1 user thanked winki for this post.
hornbeam on 08/06/2018(UTC)
S_M
Posted: 08 June 2018 14:13:44(UTC)
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hornbeam;63577 wrote:
Thanks for all the good posts, its helpful.

I dont want to use a financial advisor, I have been managing my own pension funds for about 5 years and been lucky enough to have got around 10% a year, with some success.

HL seems my first choice at the moment but lately people seem to have a few issues with their website.

I dont mind paying slightly higher charges if the online platform gives a wealth of info and is easy to use.


HLs website is fine with me. Don’t forget that 0.45% platform fee is capped at £200 pa. if you invest in shares, ITs and ETFs.

I also use HL for holding overseas shares, which in recent years have given my portfolio a good degree of diversification and thankfully some solid returns.
3 users thanked S_M for this post.
hornbeam on 08/06/2018(UTC), David 111 on 08/06/2018(UTC), william barnes on 08/06/2018(UTC)
deepblue
Posted: 08 June 2018 15:18:28(UTC)
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I've used Charles Stanley Direct for some years for SIPP and ISA. Fees reasonable at 0.25% with a discount once combined values of accounts exceeds 200k. No trading costs for funds, £11.50 for trusts and shares.

Good reliable website plus smartphone app if you want. Good telephone helpline if needed. No complaints, professional service and fair charges.

Not started the sipp drawdown yet but it looks straightforward.
1 user thanked deepblue for this post.
hornbeam on 08/06/2018(UTC)
Eddie Benn
Posted: 08 June 2018 15:27:10(UTC)
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For over 15 years I had used Barclays Stockbrokers for ISA and an A J Bell managed SIPP, Basrclays has recently downgraded their site to the point where it is unusable and their repeated mess ups cost money.

I switched everything to Halifax Share Dealing. As far as I am aware charges are reasonable but this is not the main priority as service is more important. Their support so far is excellent. Their SIPP is another A J Bell scheme and I have been impressed at their help in transferring from Barclays and in trying to resolve the mistakes Barclays keep making.
1 user thanked Eddie Benn for this post.
hornbeam on 08/06/2018(UTC)
Money Spider
Posted: 08 June 2018 16:22:12(UTC)
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Hornbeam,
I think that you'll find that platforms are a bit like cars: some people are very loyal to one brand, some to others. Similarly, some are cost-driven and others like a perception of security and quality etc.

You are obviously doing your research. There is plenty of comment on these fora/forums about platforms and I think you will find most of it fair and well-meant.

I have a SIPP with HL and my plan is to draw down in tranches over a number of years. The process is straightforward, I have had no problems and the cost is zero. Likewise HL's customer service is very good and their website generally easy to use etc. They are currently changing their login process which will make it more unwieldy - few people like change, but I expect most will get used to it.

The question re. HL is generally their charging structure, especially for UTs/OEICs - so do your research well there. Otherwise, others speak well of some other platforms (including on this thread). Of course, you only really know the answer once you've been a long-term customer, hence I will restrict my comments to HL.

I wish you well - do your research and have confidence in your decision.
1 user thanked Money Spider for this post.
hornbeam on 08/06/2018(UTC)
hornbeam
Posted: 08 June 2018 16:35:44(UTC)
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Money Spider;63597 wrote:
Hornbeam,
I think that you'll find that platforms are a bit like cars: some people are very loyal to one brand, some to others. Similarly, some are cost-driven and others like a perception of security and quality etc.

You are obviously doing your research. There is plenty of comment on these fora/forums about platforms and I think you will find most of it fair and well-meant.

I have a SIPP with HL and my plan is to draw down in tranches over a number of years. The process is straightforward, I have had no problems and the cost is zero. Likewise HL's customer service is very good and their website generally easy to use etc. They are currently changing their login process which will make it more unwieldy - few people like change, but I expect most will get used to it.

The question re. HL is generally their charging structure, especially for IUTs/OEICs - so do your research well there. Otherwise, others speak well of some other platforms (including on this thread). Of course, you only really know the answer once you've been a long-term customer, hence I will restrict my comments to HL.

I wish you well - do your research and have confidence in your decision.


Thanks, what you have done is what I am aiming to do, and HL looks my favourite at the moment, the plan is to transfer the pot to a drawdown sipp, draw around £5k a year to put into a share isa, so I pay the basic rate take now rather than in 10 years, then the isa will be tax free.

Monty Claret
Posted: 08 June 2018 16:53:28(UTC)
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I invest with HL, and their platform is very good. The telephone helpline is excellent.

I think most people confuse cost and value. In the long run value is always better!

2 users thanked Monty Claret for this post.
hornbeam on 08/06/2018(UTC), william barnes on 08/06/2018(UTC)
Law Man
Posted: 08 June 2018 17:06:53(UTC)
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I use HL because the service is impeccable. To me it is worth paying a little more to have telephones answered promptly by people who speak clearly and intelligently.

Is it that expensive? There is no charge for draw downs: relevant to you. If you choose ETFs and aiTs your charge is £200 p.a. maximum.

I would not rely on reviews on Trust Pilot. Search for reviews by professionals.
4 users thanked Law Man for this post.
hornbeam on 08/06/2018(UTC), Harry Trout on 08/06/2018(UTC), john brace on 08/06/2018(UTC), william barnes on 08/06/2018(UTC)
Samual Saunders
Posted: 09 June 2018 05:38:35(UTC)
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Hello again Hornbeam,

Do give very careful consideration to drawing down from your Sipp and using that money for S&S ISA's as future income. The thought of all tax free money is always attractive, but in taking such action you will be leaving the security of the Trust in which the Sipp is invested.

ISA's will count in the value of your estate when you die and if your estate will be in the IHT area, then you should keep the Sipp as long as possible as it is an important vehicle where IHT planning is concerned.

The Trust fund is also protected from any estate debt or legal action against you and the Sipp is able to pass on to your spouse tax free, so do think carefully about that.

Sam
3 users thanked Samual Saunders for this post.
hornbeam on 09/06/2018(UTC), Monty Claret on 10/06/2018(UTC), Mike L on 12/06/2018(UTC)
hornbeam
Posted: 09 June 2018 05:54:07(UTC)
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Samual Saunders;63620 wrote:
Hello again Hornbeam,

Do give very careful consideration to drawing down from your Sipp and using that money for S&S ISA's as future income. The thought of all tax free money is always attractive, but in taking such action you will be leaving the security of the Trust in which the Sipp is invested.

ISA's will count in the value of your estate when you die and if your estate will be in the IHT area, then you should keep the Sipp as long as possible as it is an important vehicle where IHT planning is concerned.

The Trust fund is also protected from any estate debt or legal action against you and the Sipp is able to pass on to your spouse tax free, so do think carefully about that.

Sam


Thanks Sam your an early riser like me.

Only a small amount will be drawn around 2% a year of the fund to put into an isa, it will just give me more financial security knowing I have some finances if needed to use as a loan to myself rather than borrowing.


Samual Saunders
Posted: 09 June 2018 06:04:21(UTC)
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We have a few ISA's and tend to use them rather than Sipp drawings to maintain the 'Pot' as long as possible. Always good to invest as much as possible into ISA's if IHT isn't likely to be a concern and as I mentioned, I prefer 'Funds' rather than other, more risky things even though I pay HL 0.45 for using them. Selecting the right funds is the key.

If you haven't heard of them, Lindsell Train funds are good, over 8% in the last couple of months and really great reviews, but have a good look around and read lots.
Sam
1 user thanked Samual Saunders for this post.
hornbeam on 09/06/2018(UTC)
hornbeam
Posted: 09 June 2018 06:23:56(UTC)
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Samual Saunders;63622 wrote:
We have a few ISA's and tend to use them rather than Sipp drawings to maintain the 'Pot' as long as possible. Always good to invest as much as possible into ISA's if IHT is nt likely to be a concern and as I mentioned, I prefer 'Funds' rather than other more risky things even though I pay HL 0.45 for using them. Selecting the right finds is the key.

If you haven't heard of them, Lindsell Train funds are good, over 8% in the last couple of months and really great reviews, but have a good look around and read lots.
Sam


Thanks Sam, I have seen the linsell one but my current pension provider does not have it.

But they do have had fundsmith, SE Technology which have both done well over last few years, although Technology could suffer when apple and alphabet change classification.
Saurabh Chavda
Posted: 09 June 2018 06:30:40(UTC)
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I believe Vanguard UK is the most suitable for any over 40 investor. I am with Vanguard since they launch in UK. Absolutely wonderful service. Very low charges and great funds. They are also launching a Pension (SIPP) by end of 2018. Trust me you can't go wrong with Vanguard. Very simple, basic and fulfilling all our investment needs.
1 user thanked Saurabh Chavda for this post.
hornbeam on 13/06/2018(UTC)
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