Income drawdown charges

How much does income drawdown cost with the Best SIPP?

We give you great value for money with low income drawdown charges and annual service fees of 0.3% or less for our Best SIPP. We know that your retirement is likely to last several decades, so our lower fees mean you could have more money to enjoy in later life however you take an income from your pension.

Low-cost SIPP service charges

Pension value Annual charge
Up to £250,000 0.3%
£250,000 - £1 million 0.2%
Over £1 million No charge
Full details of our Best SIPP charges

Income drawdown fees

Fee type SIPPs valued at £100k or greater (after tax-free cash)** SIPPs valued below £100k (after tax-free cash)**
Set- up fee £0 £0
Initial calculation fee £90 £100
Annual charge for income payments (after tax-free cash) £0 £100
Ad hoc income payments £25 £25
Alteration of payment amount or frequency £25 £25
Annuity purchase through Bestinvest £75 £75
Annuity purchase (external) £150 £150
Arranging death benefit At cost At cost
Pension splitting on divorce At cost At cost
Refund of overpaid contributions £75 £75
Drawdown valuation £0 £3 per line of stock

VAT is payable on all fees and payment is due when they are actioned.

Best SIPP exit fees

How long has the account been open?** Fee for SIPPs valued £100,000 or more (after tax-free cash)* Fee for SIPPs valued below £100,000 (after tax-free cash)*
Less than 1 year £290 £290
Between 1 and 2 years £175 £175
More than 2 years No charge No charge

VAT is payable on all fees and payment is due when they are actioned. Other fees may apply, including for transferring to another provider. See our Key Facts and Costs document for full details.

Speak to an expert about income drawdown

To find out more about our charges for income drawdown and opening a Best SIPP please get in touch:

The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or get free guidance from Pension Wise.

*We operate a tiered annual management fee structure. Other fees apply.

** Where clients have entered drawdown prior to 6 April 2015, the new drawdown charging structure will still apply from 6 April 2015 for accounts valued at £100k or greater (after tax-free cash) at the point of crystalisation.

*** Drawdown closure fees are only payable if your SIPP is closed due to withdrawing all of the funds whilst utilising drawdown. Standard closure fees will apply if you transfer your SIPP to an alternative provider whilst in drawdown. Find out more in our Key Facts and Costs document.

SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Please contact us for guidance or advice if you are unsure whether a SIPP is right for you.

FREE GUIDE

Income drawdown

Income drawdown

Find out more about taking a flexible income with our Best SIPP in this free guide to income drawdown.

Find out more