A drawdown isnāt a specific thing on its own as thereās usually actually several types of drawdowns available (depending on provider), some of these are considered products because you select them. For example an annuity.
Vanguard who just recently offered their drawdown options offer two options (at no extra cost) but donāt offer an annuity product.
Iāve no idea what theyāve got planned but I donāt see why they wouldnāt be fully supporting in species transfers at that pointā¦ unless your planning to retire next year.
I think weāre agreeing, drawdowns arenāt a product, so I was highlighting the statement was odd that FT didnāt have any. Generally there would be three outcomes, drawdown, annuity or cash at end game retirement. For simplicity Iām ignoring there could be multiple pension pots with different providers.
If drawdown the tax free cash would be calculated and taken out and the balance moved to a post retirement pot, but I donāt see any mention of that.
In fact I donāt see any mention of post retirement options, but nor do I see any note that itās a pre-retirement SIPP only. Itās the lack of clarity and definition Iām pointing out.
The selling to cash comment relates to both having to do that on the way into the SIPP as it only accepts cash initially, but potentially also at the point of retirement to a drawdown post retirement SIPP pot elsewhere.
Perhaps itās because Iām getting older and closer to retirement that Iām getting more interested about how I get the money back out. I just think it would be useful if those plans were set out also. Who knows, we may get an AMA where itās all explained.
If it is of any benefit Vanguard also didnāt provide any info on drawdown options when they launched their SIPP. Their drawdown options only launched recently.
They would be a product in the strictest sense. e.g. they may offer multiple drawdown type products (it doesnāt need to cost extra)
As Sam mentioned previously, we are almost there! We are all super excited to share our Freetrade SIPP with you this month.
Just wanted to hopefully shed some light on a few questions Iāve seen on here.
You are correct in saying we wonāt be offering any drawdown options from launch. Iām not sure how close you are to your intended retirement age but this is something we definitely want to do in the future but we donāt have a date we can share with you quite yet.
In regards to In-Specie transfers support, both in and out, weāll be looking to support this starting from the first half of this year.
Any chance you could provide any update on your support of 0% withholding tax on US shares? I know most SIPPs should provide this but it seems to be down to the provider actually implementing it.
Thanks Glenn. I have 10 more years at least before retirement so there is no immediate need, Iām just more sensitive to the rush to market approach with a product that isnāt rounded out when it comes to retirement. In-specie inwards for example would have been much better to have at launch.
Assuming I can get over the lack of in-specie hurdle, there are other things arguably more pressing than drawdown, such as being able to buy more than Ā£9,900 of UK stock at a time, a website and reporting options.
For some perspective pensions have a tendency to be in funds which arenāt available in SIPPs on diy platforms, so in species transfers are often out of the question, annoying but not the end of the world. As for drawdown options, vanguard arguably one of the most well known investment companies around never offered drawdown options on launch.
Agreed on the 10k trade limit, that will get annoying
Having looked at the terms and conditions the Freetrade SIPP is actually a Gaudi SIPP white labelled as a Freetrade SIPP unless I have misunderstood this?
These Terms and Conditions, together with your application form and any other documents specified in the application declaration, form a legally binding agreement between you and us (Gaudi Regulated Services Limited and Gaudi Trustees Limited).
Gaudi Regulated Services Limited will administer your pension plan in accordance with the Trust Deed and Rules. This involves the day to day running of your pension plan, ranging from processing contributions, transfers, investments and paying benefits, to ensuring the pension plan adheres to HMRC rules and regulations.
Free because of the free share right? Thats exactly how Iāve viewed it too, and I think I can get it to a position in 12 months where the monthly fee will be cheaper than the Ā£% I pay to my current pension providers.
Yeah, thats how im viewing it, no cost since the share effectively covered the first yearish
Thats how im considering it. There are two things for me, this SIPP offers significantly more options in terms of investments, while the price is higher i have options i would really like to invest in long term for a pension. Well see how it goes 1 year in.
Im also trying to find out if i can do partial transfers from my employer pension so i can keep putting money in that but transfer out 90% of the funds every year as the choice isnt as good either.
In case anyone is doing due diligence and is wondering why Gaudi keeps coming up in solicitors and claims management companies as being involved in fraud. It looks like from some initial reading into it, Gaudi provided SIPPs for some other investment companies who in turn mis-sold those products and/or went bust (Beaufort Securities), and in one case it looks like an investment company wet bust (Greyfriars) and Gaudi was appointed to take over the SIPPs. The claims website mix up a lot of the actual information but are first to pop up on google.
(oh, yes i do 
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