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I don’t want to take any money out from my pension for at least 5 years where shall I inverse it? Is somewhere like Wealthify suitable ?

18 February 2022

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Question by Kim

I have a pension in a drawdown account . I don’t want to take any money out for at least 5 years where shall I inverse it ? Is somewhere like wealthify suitable ?


Answered by Tamsin Caine

Hi Kim

There are a number of things that you should look at. I'm not sure where the drawdown pension is held at the moment and why you don't want to keep it where it is but there are a number of factors to consider. Firstly, the pension provider or platform - take a look at the costs that the existing provider charges and compare them with other potential providers. It is worth looking at how they charge for taking money out of the drawdown account as well. Some will charge a drawdown fee, which may not be relevant for the next 5 years but still worth looking at. The next consideration is where the money is invested, i.e. the specific investment funds. Lots of the pension providers/platforms have a wide choice of investments. It is worth looking at whether the providers you are considering offer a wide choice, including low cost tracker funds. In terms of the actual investments you choose, this will depend on your attitude to investment risk, i.e. how much risk you are prepared to take. You should also consider how much risk you need to take to reach the pension income that you need in retirement to live the life that you want.

I hope this helps a little.

Tamsin

Answered by

Tamsin Caine

Director of financial planning

I’m a single mum of two wonderful teenagers. I divorced in 2017 and grew up from the age of 12 with divorced parents. Following these experiences and realising how my financial planning experience could help, I founded Smart Divorce in 2018.