AJ Bell has announced that it will remove its drawdown fee from January, hot on the heels of ii which removed the drawdown fee on its
SIPP in October. Vanguard is following suit, announcing that it’s launching a drawdown option for personal pensions with no drawdown fee whatsoever.
These moves mean those who want flexible access to their pension pot are now able to do so freely, without paying the pension provider every time they want access. Charges on drawdown could essentially cut into the benefit of any funds withdrawn, so this enhanced competition comes at a great time for retirees who may be wondering what to do with their pension pot.
“We welcome the key trend towards zero-charge drawdown fees, particularly at a time of strain for some people in or approaching retirement,” said Becky O’Connor, Head of Pensions and Savings for interactive investor. “The difference that all pension fees make to someone’s pension pot over the decades is massive.”
If you’re considering your retirement options – or are looking for a new platform to start or continue investing into – let’s take a look at what pension drawdown actually is and why you may want to consider it.
