Liberty SIPP

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The best SIPP for immediate drawdown?

How much will it cost you to take Income Drawdown with Liberty SIPP?

Believe it or not, nothing!

A Liberty Pension it does what it says on the tin; it provides a pension. That’s what you’ve paid for.

Whereas almost all SIPP companies charge for:

• Setting up Drawdown and PAYE records – typically £150
• Ongoing pension payments and tax deduction – again typically £150, payable up front

This means that it could cost you £300 to retire.

But not at Liberty SIPP! We never charge you for starting Drawdown, or for 5 yearly reviews.

Anyone who takes full Drawdown and has a statutory pension review every 5 years never pays a penny in Drawdown charges.

Do we charge anything at all?

We charge set up and annual fees for the SIPP itself, same as everyone else (see below!) but we only charge for Drawdown if you take your pension in stages, or have extra pension reviews.

Is Drawdown for life?

Not necessarily, but what are the odds against annuity rates being attractive on the day you retire?
You need to pick your moment to buy an annuity, so you may stay with Drawdown for several years.
Meanwhile you want the flexibility of a SIPP but you don’t want to see your fund eroded by fees.

Of course you pay nothing if you take an annuity out. Oh but you do! The insurance company will typically take 0.5% of the fund each year and an advisor may charge a larger percentage fee up front. You don’t see the costs but they’re reflected in the amount of pension your fund will buy.

Consider Mr Smith

He has no Protected Rights, brings 2 transfers with him, makes one investment and goes straight into Drawdown. We would charge £960 in year 1, and £385 in future years.

In year 1 we are at least £300 cheaper than most of the competition, but from year 2 nobody comes near us! The average renewal fee is about 75% more than ours but some are much more. And this is before we take other firms’ Drawdown costs into account!!!

The moral to the story: FOR DRAWDOWN YOU NEEDN’T LOOK FURTHER THAN LIBERTY!

Feb 6, 2009