I was one of the ones that really waited for FreeTrade to launch their SIPP option. Once it went live earlier this year, I done all my dd , compared fees, make calculations, etc and indeed - Freetrade’s SIPP is by far the best available option for SIPPs in UK. Just before joining I took the time and read carefully through all the T&C and what stopped me from joining was the fact that: “YOU CANNOT DRAW BENEFITS FROM THE FREETRADE SIPP AND WILL HAVE TO TRANSFER TO ANOTHER PENSION PLAN TO DO THIS”.
As mentioned before, I found that quite discouraging even if I know little facts about how this would happen. In my mind, transferring to another plan close to retirement age just to draw the benefits might be costly or impossible as I don’t see why other company would happily accept your pension funds just for you to draw the benefits, after you haven’t paid f/ all in charges to them over the years. Again, this is just my own thinking and I have not explored what the situation is in reality. This is the reason why I am here now)
- Does anyone have knowledge of how this would work out? What type of charges would one incur when wanting to transfer to another plan close to retirement age just to be able to draw the benefits?
- For the ones that have already joined or transferred their pensions to Freetrade SIPP - what is your plan for when the moment comes to draw the benefits and you will not be able to do it directly from Freetrade?
- Does anyone know for sure if other pension providers will accept the transfer from Freetrade just to draw the benefits?
Any comments, thoughts or suggestions on this topic would be really appreciated ( even from Freetrade moderators if there are any ).