Help finding SIPP providers that allow pension withdrawals

Hi

Could you please help? I am getting ready to start next year, withdrawing money from my SIPP. But I am finding it hard to find out all the fees and charges from all the providers. Some won't even let you withdraw money; you have to transfer your SIPP to another provider first. Is this something you have researched? There were almost 1 million private pensions activated last year. You could do your clients a big favour if you could tell people who the cheapest SIPP providers are for those who want to access their pension pots at this time.

Thanks.

Thank you for your question – you're absolutely right that accessing your pension can feel like navigating a maze, especially when it comes to understanding fees and withdrawal options. You're not alone in finding this frustrating!

You're right to be cautious about exit fees and drawdown charges. Here's what you need to know:

• Exit fees are capped at 1% for anyone over 55 (rising to 57 from 2028), thanks to FCA rules from 2017

• No exit fees at all on pensions set up after 31 March 2017

• Many providers will actually cover your transfer costs (often up to £500) when you move to them

• With most modern providers like Fidelity, Hargreaves Lansdown, and PensionBee, there are no specific drawdown fees – you only pay the usual platform fee and investment charges

If your current provider doesn't offer drawdown

You're absolutely right that some older SIPPs don't support drawdown services. If you're in this situation, you'll need to transfer your pension to a provider that does. This isn't as scary as it sounds:

• The transfer process typically takes 2-3 weeks

• Your new provider will handle most of the paperwork

• You can transfer as cash or "in-specie" (keeping your existing investments)

• Check your current provider's exit fees first – but remember, many new providers will cover these costs

Some helpful further reading can be found below

We hope this helps clarify your options. The pension market has become much more consumer-friendly in recent years, so you should be able to find a provider that gives you the flexibility you need at a reasonable cost.