Save money on income drawdown

By Nigel Callaghan | 06 Jun, 2008 

Do you have an existing drawdown pension? If so you may be unaware that you can now transfer these plans between providers. By doing so you may be able to save thousands of pounds in charges, access superior investments and better service.

If you are worried about being out of the stock market, don’t be. Many drawdown plans can be transferred without selling your investments. This is known as an ‘in-specie’ transfer and the investments are simply moved from one provider to another as they are.

However if you aren’t happy with your investments, now might be a great time to change. People tend to hang on to poorly performing investments when the market falls, yet this should be seen as an opportunity to swap them for something with more potential to recover when the market picks up again.

Have a look around. See what new drawdown plans are available. It’s likely that you already review your drawdown investments regularly to see how they are performing, why not review the plan itself at the same time? Do you value the advice you are getting?

Transferring is easy and will normally be arranged for you by the pension provider in the same way a bank would transfer your account.

Make sure you are getting the most out of your drawdown plan, after all, it doesn’t take long to change but the benefits are yours for life.

Find out more about income drawdown in the Vantage SIPP. If you have any queries our pensions helpdesk will be happy to help, call them on 0800 138 2121.

Like our other Vantage accounts, drawdown in the Vantage SIPP is normally arranged on a non advisory basis. Therefore all income and investment decisions will be your own. However, if you currently take advice and would like to continue to do so after transferring, this can be arranged separately. Drawdown is a complex area and if you are at all uncertain we strongly suggest that you do choose to take advice. Please call us for more information.